SIP(Systematic Investment Plan)

What is SIP?
A Systematic Investment Plan (SIP) is a plan in which a fixed amount of money is invested systematically in a mutual fund scheme over a period of time.

Why SIP?
one; This will bring financial discipline in your life. two; Invest without worrying about the fluctuations of the stock market. For example, suppose you deposit a certain amount every month. You may delay investing due to market fluctuations. This is done on the assumption that the market will fall. But SIP puts an end to this. Deposits are automatically made over a period of time without any effort on your part.

What are the benefits of SIP?
Rupee cost averaging is done by investing over different market cycles. The fund price fluctuates daily. A certain amount is deposited every month. When the price is low, more units will be bought and when the price is high, fewer units will be bought. Therefore, the average purchase price will decrease and the profit will also increase. Another benefit is the magic of compounding over the long term. It can help you to meet your financial goals after 10 or 20 years by investing small amounts at regular intervals.

Can SIP be changed?
can The most popular method is to deposit a fixed amount every month. But through SIP, you can invest every two weeks or every two months. The SIP investment amount can also be changed at regular intervals. There is also 'Alert SIP' for those who want to invest more if the market is at a low level. The investor will be informed about this through SMS.

In case of perpetual SIP, no stop date is given. If you want to stop the SIP on completion of the investment objective or for other reasons, you just need to apply to the fund house.