Systematic Investment Plan
SIP is an investment route offered by mutual funds where in one can invest a fixed amount in a mutual fund scheme at regular intervals say once a month or once a quarter, instead of making a lump-sum investment. The installment amount could be as little as INR 500 a month and is similar to a recruitment deposit you can also do Online SIP investments.
Benefits Of Systematic Investment Plan
- Requires less capital to start investing.
- Makes market timing irrelevant.
- Enables rupee-cost averaging.
- Benefits from the power of compounding
Cost
of Work
When you start a SIP, a fixed amount of money is automatically deducted from your bank account and invested in the chosen mutual fund scheme. The units are allocated based on the prevailing Net Asset Value (NAV) of the scheme at the time of investment.
SIPs offer several benefits, including:
1. Disciplined investing: SIPs promote regular and consistent investments, helping you avoid emotional decision-making during market fluctuations.
2. Rupee cost averaging: With a fixed investment amount, you buy more units when prices are low and fewer units when prices are high, potentially lowering the average cost per unit over time.
3. Power of compounding: Starting early and staying invested in SIPs allows you to benefit from the power of compounding, leading to potential long-term wealth creation.
Yes, many mutual fund companies allow you to increase or decrease your SIP amount. This flexibility allows you to align your investments with your changing financial circumstances.
Choose the best SIP plan with us .
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