What is an SIP?
An SIP or a Systematic Investment Plan allows an investor to invest a fixed amount regularly in a mutual fund scheme, typically an equity mutual fund scheme.
Why should you SIP?
There are lot benefits of using SIP. But main benefits are -
1. It imparts financial discipline to your life.
2. It helps you to invest regularly without wrestling with market mood, index level etc.
What are the other benefits of SIPs?
SIPs help you to average your purchase cost and maximise returns. When you invest regularly over a period irrespective of the market conditions, you would get more units when the market is low and less units when the market is high. This averages out the purchase cost of your mutual fund units.
Another benefit, called the eighth wonder of the world by some, is the power of compounding. When you invest over a long period and earn returns earned by your investment, your money would start compounding. This helps you to build a large corpus that help you to achieve your long-term financial goals with regular small investments.
How much money do I need to start an SIP?
You can start investing in a mutual fund scheme via SIP with a minimum of Rs 500.
Can I customize my SIP?
Yes, you can. Though the most popular SIP is investing a fixed amount every month, investors can customise the way they put money via SIPs. Many fund houses allow investors to invest monthly, bi-monthly and fortnightly, according to their convenience.
An SIP or a Systematic Investment Plan allows an investor to invest a fixed amount regularly in a mutual fund scheme, typically an equity mutual fund scheme.
Why should you SIP?
There are lot benefits of using SIP. But main benefits are -
1. It imparts financial discipline to your life.
2. It helps you to invest regularly without wrestling with market mood, index level etc.
What are the other benefits of SIPs?
SIPs help you to average your purchase cost and maximise returns. When you invest regularly over a period irrespective of the market conditions, you would get more units when the market is low and less units when the market is high. This averages out the purchase cost of your mutual fund units.
Another benefit, called the eighth wonder of the world by some, is the power of compounding. When you invest over a long period and earn returns earned by your investment, your money would start compounding. This helps you to build a large corpus that help you to achieve your long-term financial goals with regular small investments.
How much money do I need to start an SIP?
You can start investing in a mutual fund scheme via SIP with a minimum of Rs 500.
Can I customize my SIP?
Yes, you can. Though the most popular SIP is investing a fixed amount every month, investors can customise the way they put money via SIPs. Many fund houses allow investors to invest monthly, bi-monthly and fortnightly, according to their convenience.
