SIP

Systematic Investment Plan

What is SIP ?

The Systematic Investment Plan (SIP) is a very simple and practical way to invest consistently in mutual funds. By starting early, SIP allows one to develop the habit of saving while creating wealth for the future. Through SIP, providing simplicity as well as flexibility, one can establish a planned strategy for prudent investments.SIP debits itself from the investor’s account and the funds are invested in the designated mutual fund strategy.The investor thereafter acquires a predetermined amount of units based on the ongoing market rate. Additional units are continuously added to the investor’s account as an outcome of SIP payments. Retail investors without sufficient funds for seeking active investments have found SIP to be the most beneficial form of making investments.

Benefits of SIP

Convince

Disciplined Saving

Flexibility

Long Terms Gains

Convince

Offering a hassle-free way of investing, one can establish a standing order to have the SIP amount regularly debited from their bank account.

Disciplined Saving

By committing to regular investments through a SIP, you are investing. Consequently, the SIP helps one develop a disciplined saving habit while sketching out a plan for achieving their financial objectives and desires.

Flexibility

It is typically recommended to continue SIP with an eye towards the future, although one can choose to increase or reduce the amount as they prefer.

Long Terms Gains

Due to rupee cost averaging and the power of compounding, investing through SIPs provides profits over the long run. Rupee cost averaging is an automatic market timing strategy that does not require market timing.