The next time you decide to start a systematic investment plan (SIP) in a mutual fund (MF) scheme, be careful of the boxes that ask you to fill in the start date and end date. Next to the end date box, there is a small box that says ‘Perpetual SIP’. The year, in most cases, would be 2099. The other blank end date box will ask you to fill in a date of your choice. The box with end date as 2099, or the Perpetual Date option, means that your SIP will continue forever (or till the year of 2099; but that’s as good as forever). The other end date option means that your SIP will end on the day you specify. Whichever of the two boxes you choose, your SIP will start in that fund. But choosing a perpetual SIP could have some pitfalls if you don’t handle it carefully.
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