Here are a few basic cues you can use to determine how much quantum of SIP you need to do on a monthly basis.

· Your Equity Mutual Fund allocation must form part of your larger financial plan. In fact, you need to work backward. First identify your goals and then decide on your equity allocation and accordingly plan your equity SIP.

· While planning your SIP amount you will be making assumptions on the returns on the equity fund. Try to be as conservative as possible. Also make provisions for contingencies, financial withdrawals and market volatility.

· Your SIP allocation is all about discipline, so you must ensure that your equity-SIP grows with your income levels. You need to define a minimum compulsory savings and work your SIP according to that. Also when you are using your equity-SIP to plan for a future goal, provide for inflation in costs and then decide your SIP amount.