If your portfolio doesn't include the SIP+HIP+TIP combination, you've made a big mistake! Correct this error while you still have time..
The new year brings an opportunity for new beginnings, and in 2026, if you are truly serious about your financial future, simply investing is not enough. Adopting the right strategy is crucial. In today's world, a strong portfolio is one that not only grows your wealth but also protects your health and family. SIP, HIP, and TIP fulfill this need. Together, these three create a strong foundation for your wealth, health, and security.
SIP: Small Investment, Big Fund
SIP, or Systematic Investment Plan, is the easiest and most disciplined way to invest in mutual funds. In this, you invest a fixed amount every month, such as ₹500, ₹1000, or ₹5000.
The biggest strength of SIP is rupee cost averaging and compounding. Let's say you invest ₹5000 per month in an SIP for 15 years and get an average return of 12%. During this period, your total investment will be ₹9 lakh, but the interest earned will be approximately ₹14.79 lakh, and the fund can reach up to ₹23.79 lakh at maturity. This is the magic of compounding. You can consider SIP as your life's Wealth Creation Tool. The longer the time, the larger the corpus.
HIP: Essential Investment to Protect Savings
HIP, or Health Insurance Plan, is considered an expense by many, but in reality, it is the most important investment to protect your savings.
A medical emergency can wipe out years of earnings in minutes. If you have health insurance worth ₹10 lakh, the insurance company covers the treatment costs, and your investment plan remains secure.
Financial experts believe that every individual should have health coverage equivalent to at least 50% of their annual income. That is, if your income is ₹10 lakh, you should have at least ₹5 lakh in health insurance.
TIP: A Safety Net for the Family
TIP, or Term Insurance Plan, is the foundation of your family's financial security. If something unfortunate happens to you, this policy provides financial support to your family. The biggest advantage of term insurance is comprehensive coverage at a low premium. For example, a 30-year-old can get a ₹1 crore term insurance policy for approximately ₹10,000–₹12,000 annually. This amount can be less than a single month's EMI, but the benefit lasts a lifetime. Ignoring TIP (Term Insurance Plan) is like compromising on your family's security.
Why SIP + HIP + TIP are essential
Your financial life is divided into three important parts:
SIP (Systematic Investment Plan) increases your income and wealth.
HIP (Health Insurance Plan) protects your health and savings.
TIP (Term Insurance Plan) ensures your family's financial security.
If you only have SIP and a medical emergency arises, your investments could be jeopardized. If you have health cover but no term insurance, your family could face financial hardship. Therefore, a smart investor focuses not only on returns but also on risk management.
Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
