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SIP- Systematic Investment Plan

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A Systematic Investment Plan allows an investor to invest a fixed amount regularly in a mutual fund scheme. Sip helps you to allocate regularly some portion of your income and helps you to build a corpus. Sip’s helps you to average your purchase cost and maximise returns when you invest regularly over a period irrespective of the market conditions. Another benefit of investing in SIP’s is the power of compounding. When you invest over a long period and earn returns on the returns earned on your investments your money would start compounding.

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Benefits of Systematic investment plan-

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a) Simple and disciplined approach towards investment.

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b) Investment possible with small sum of money invested regularly to accumulate wealth.

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c) Based on concept of rupee cost averaging.

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d) Flexibility in terms of amount or quantity based SIP.

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e) Forced Savings as you dont have to put efforts to save money for investment, your bank will automatically deduct the sip amount on due date.