Spread the loveA Systematic Investment Plan (SIP) allow you to invest a fixed amount regularly to build wealth over time. If you want to sta
What is an SIP?
An SIP investment is a method of investing money in mutual funds where you invest a small fixed amount regularly over time instead of a lump sum at once. The fixed periodic investment amount could be as low as Rs 500 monthly.
For example, you can invest Rs 2,000 monthly for 20 years or Rs 10,000 quarterly for 5 years. This fixed investment goes into a mutual fund scheme of your choice.
The Key Benefits of Investing Through SIPs
Auto-Pilot Investing: The biggest benefit of SIPs is discipline and forcing you to save and invest every month without fail. The automatic and hassle-free process makes it easy to stay disciplined.
Rupee Cost Averaging: By investing every month, you buy more units when the price is less and fewer units when price is high. This levels out and brings down your average cost per unit.
Power of Compounding: Investing early and regularly means your money gets more time in the market to grow. The power of compounding makes your investments grow exponentially over long periods.
Flexibility: You can choose any investment amount, date, and frequency based on what suits your financial situation – monthly, quarterly, etc. You can start small if you cannot invest much at once.
No Entry or Exit Loads: SIP allows free entry and exit in funds anytime as SEBI has removed loads on SIPs.















