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SIP Investment

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Systematic Investment Plan

A SIP is quite simple! It entails investing a fixed sum of money in a mutual fund on a regular basis on a fixed date. You can structure the SIP to be fortnightly, monthly or quarterly. Ideally, a monthly SIP is the best as it matches with your cash flows and therefore it is easier to monitor.

SIP (Systematic Investment Plan) is a mode of investing in Mutual Funds. It allows you to invest a predefined amount at regular intervals. It allows you to put a small amount in your favorite mutual fund scheme monthly. For Example – With a minimum SIP amount of Rs.500.

If you are using SIP, it reduces the risk and uncertainty that you are likely to experience with other investments like stocks and bonds. And thus, it requires a certain amount at regular intervals, as you are also establishing some discipline in your financial life.

Why Invest In SIP?

Starting a SIP will help you to ensure that you are saving every month. Every month you’re investing a fixed amount per your choice will save a small amount and add financial discipline to your financial career. You can even have the choice to pick the SIP date once your salary is credited into your account.

How Does SIP Work ?

Investors can choose from a number of investing options, including systematic investment programmes, through mutual funds and other investment companies. SIPs allow investors to invest minimal amounts of money over time instead of making large investments all at once.

Benefits of SIP Investment :

SIP mutual funds are flexible in nature, thus, investors can choose to decrease or increase the amount of investment, or stop investing in the plan whenever they want. SIP is the safest and best choice of investment for beginners and for those who are not well-versed in the mechanism of the financial market.

Benefits of

SIP Investment

When you invest regularly through SIP and invest for the long term, the benefits are magnified by the compounding effect. Compounding effect ensures that you earn returns not only on your principal amount (actual investment) but also on the gains on the principal amount i.e. your money grows over time as the money you invest earns returns. And the returns also earn returns.

By taking the SIP route to investments, the investor invests in a time-bound manner without worrying about the market dynamics and stands to benefit in the long-term due to average costing and power of compounding