Unlike other investments, you don’t have to deposit a lump sum amount. As SIP plans are pretty flexible in terms of amount and intervals, you don’t need to have a large sum of money to start with. The intervals at which the amount is deducted can be weekly, monthly, quarterly, half-yearly, or yearly based on their chosen plan. Under the SIP plan, one can invest an amount as low as ₹500. The SIP intervals at which the fixed amount is invested can be weekly, monthly, quarterly, half-yearly, or yearly based on their chosen plan. The fixed amount of instalment money can be as low as Rs. SIP allows an investor to invest a fixed amount of money in his preferred mutual fund scheme at pre-defined intervals. What is SIP - Systematic Investment Plan?Ī Systematic Investment Plan (SIP), more commonly known as SIP, is an investment route provided by mutual funds to the investors to invest in a disciplined manner. Let us understand in detail about what is SIP and how it works. As the name suggests, SIP is a planned investment toward your desired mutual fund for prolonged benefits. By taking the SIP route to assets, the investor puts 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.Ī systematic investment plan is a financial investment you can choose to make the best of a mutual fund. It can be made in the frequency of weekly, monthly, or quarterly. The investor can make the investment in small amounts instead of lump-sum. SIP is an investment facility where the investor can make a systematic periodic investment in market-linked funds for a specific tenure. A systematic Investment Plan (SIP) is an investment strategy offered by mutual funds.
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