SIP - Systematic Investment Plan

What is SIP

The Systematic Investment Plan (SIP) gives you the opportunity to invest a fixed amount of money each month in your preferable scheme. It is usually started in equity mutual funds. Systematic Investment Plan  i.e.(SIP), the Systematic Investment Plan (SIP) is a regular and a little bit of investment in a certain period of time. Through SIP you can deposit a fixed amount regularly in a mutual fund scheme. Most mutual funds offer SIP facility.

SIP mutual funds have become very popular among investors, Instead of investing a lump sum money you may gradually invest money on regular basis.

In others word, this means that, on a regular basis your money continues investing in mutual funds. It means, every month some money is automatically withdrawn or debited from your bank account and invest in a mutual fund scheme.

Why start SIP ?

Regularity is very important in investment. SIP maintains your regularity. Apart from this, SIP continues to investing regularly, even if the market is bullish or recession.

For exapmle,:- If you decide to put a fixed amount every month in a mutual fund scheme, you will have to take time for it but in SIP money will be auto debited or withdrawn on certain date from your account and invested in mutual fund scheme.

The biggest thing is the advantages of compounding. If you invest for long periods and earn returns then you get a return on your investment as long as you do not withdraw that amount. This helps you to raise a huge fund in the end.

How much money can be invested in SIP

You can start with just Rs 500/- in a mutual fund scheme.

What is SIP investment

Any investor can invest in the stock market, mutual funds and gold ETFs by SIP, the investment interval can be kept per day, per week and per month, for the job professional it is an easy investment option.

In a SIP investment, your bank account is linked to the mutual fund’s SIP scheme and the money gets debited from your bank account to the SIP scheme on the fixed date of each month. In this way it is automated way of investing so that it becomes a habit of investing and you do not have to think about it again and again. Like if you invest Rs 500 in SBI’s SIP scheme, then every month in your bank account will be deduct Rs 500 and will be invested in SBI mutual fund.

The SIP investment is a way of investing in mutual funds. You can invest in mutual funds either in Lump sum or through SIP method.

Benefits of SIP

1. SIP is also a small amount of investment.

2. SIP is a simple way of saving.

3. Withdrawing money from SIP is easy.

4. SIP is a safe and systematic investment.

5. Investing in SIP is less risky.

6. Disciplined investing in SIP.

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