Systematic Investment Plans - Investing in Mutual Funds
A SIP or Systematic Investment Plan is a popular mode of investing in Mutual Funds . As the name implies, a systematic investment plan allows investors to set up a systematic method of investing where they get to invest in regular intervals every so often – could be monthly, quarterly or semi-annually, etc. – instead of putting in a lump-sum amount at a time. SIPs allow customers more freedom to set the terms of the amount they want to invest and fix a pre-defined interval of investment . Mutual funds are designed for ease of use, allowing investors to own a diverse range of assets. And SIP is a disciplined approach to investing. Investors get to start with an amount that lets them purchase a certain amount of equity fund units which accumulate as the investment period lengthens . Market Timing Mutual funds are subject to market risks, and it is critical to time your investments precisely to reap the benefits. SIPs eliminate this risk by allowi...