Whenever we hear the term Systematic Investment Plan (SIP), the first thing that comes to mind is mutual funds. It’s what most of us have grown used to. But did you know that SIPs aren’t just limited to mutual funds? You can also do SIPs in a Portfolio Management Service (PMS) — and it can be an incredibly powerful way to achieve your financial goals.
How does it work?
The idea is simple. Just like in mutual funds, you invest a fixed (or flexible) amount into your PMS account regularly — usually every month. This approach brings discipline and consistency to your investing journey, ensuring your portfolio always has a steady flow of capital to capture opportunities.
There are two ways to go about this:
- Systematic SIPs: You commit to investing a fixed amount every month, come what may.
- Flexible SIPs: You still invest regularly, but the amount can vary depending on your financial situation, market conditions, or the opportunities your portfolio manager identifies.
Both approaches are effective — what really matters is that you make investing a habit.
Why SIPs in PMS can be more powerful than mutual fund SIPs
In a PMS, your money is actively managed by a professional portfolio manager. That means your monthly investments are not automatically allocated to a fixed basket of stocks or a passive index. Instead, they are strategically deployed into the most attractive parts of the market at that particular time.
In other words, your monthly investment isn’t just buying the same stocks every month — it’s going where the best opportunities are. When markets correct or when certain sectors become undervalued, your portfolio manager can reallocate funds and make the most of those moments.
That’s a major edge over simply doing an index SIP. You’re combining the discipline of SIPs with the strategic flexibility of active management.
The real magic happens during tough markets
Over the years, we’ve seen SIPs in PMS work beautifully in client portfolios — especially during volatile or uncertain market phases. Many investors who consistently invested every month, and even increased their SIPs by 10–20% when markets were down, saw those investments become some of their biggest wealth creators.
The reason is simple: the best time to buy high-growth stocks is often when they’re undervalued and ignored. Unfortunately, that’s also the time when most investors hesitate. By maintaining your SIP habit, you automatically deploy money when opportunities are the richest — without letting fear or hesitation get in the way.
As we often say at iThought, incremental investments should be driven not by the power of judgment every month, but by the power of habit.
Turning volatility into opportunity
The beauty of doing SIPs in a PMS lies in consistency. You’re not sitting on the sidelines waiting for the “perfect” time to invest. You’re steadily building your portfolio while your portfolio manager ensures every rupee you invest is working in the right places.
When the markets are down, your investments are actually buying more — at better prices. When they recover, your portfolio reaps the benefits of those disciplined purchases. Over time, this turns volatility from something to fear into something that works in your favor.
Discipline beats timing every time
The truth is, no one can perfectly predict market movements every month. But what really creates wealth isn’t timing — it’s discipline. The discipline of investing regularly, month after month, regardless of market noise.
When you make monthly investing in your PMS a non-negotiable habit, you build a system that’s designed to capture opportunities continuously. Let your advisor or portfolio manager do the heavy lifting of selecting the right opportunities — your job is to simply stay consistent and committed.
Review and step up your SIPs
Finally, it’s not just about starting an SIP — it’s also about reviewing it regularly and stepping it up as your income or goals evolve. A well-structured SIP strategy in a PMS grows along with you, ensuring that your wealth creation stays aligned with your financial aspirations.
At the end of the day, SIPs in PMS bring together the best of both worlds — the discipline of systematic investing and the intelligence of active management. It’s a partnership where you, your money, and your portfolio manager all win together.
So if you want your PMS portfolio to work harder for you, make monthly investing a habit. Keep it regular, stay committed, and watch how consistency and professional management combine to create long-term wealth.
