What is SIP?
A Systematic Investment Plan (SIP) is an investment strategy offered by mutual funds in which investors can invest a fixed amount regularly (monthly, quarterly, etc.) in a mutual fund scheme. SIPs enable investors to purchase units of the mutual fund scheme on a particular date each month, which helps in building a disciplined investment habit.
Benefits of SIP
- Disciplined Investing: SIP encourages regular saving and investing habits.
- Rupee Cost Averaging: By investing regularly, investors buy more units when prices are low and fewer units when prices are high.
- Power of Compounding: SIP investments benefit from compounding, as returns generated are reinvested.
- Convenience: SIPs are automated, requiring minimal effort from investors, and can be started with relatively small amounts.
- Flexibility: Investors can choose the investment amount, frequency, and duration based on their financial goals and risk appetite.
- Market Timing Irrelevant: SIP investors do not need to worry about timing the market, as investments are spread over time.
Invested Value: ₹0.00
Return Value: ₹0.00
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