What is Systematic Investment Plan?

Systematic Investment Plan or SIP is a systematic way to invest your fixed amount of money in a specified Mutual Fund. It allows you to invest your money at a regular interval (weekly, monthly or quarterly basis). This investment method works similar to the investment in Recurring Deposit, where we deposit a fixed amount of money in a bank.

Benefits of Systematic Investment Plan:

SIP enforces a disciplined approach towards investing. It infuses regular saving habits which we all probably learned during our childhood days when we used to maintain a piggy bank. Investment through SIP is a good choice for those investors who do not possess enough understanding of financial markets. It has brought mutual funds within the reach of an average person. It has enabled even those investor who has a low budget of Rs 500 or Rs 1,000 to invest on a regular basis in place of making a one-time investment.


How Systematic Investment Plan works?

Key Benefits of Systematic Investment Plan:

  1. Savings for future
  2. Flexible Investment Options
  3. Long-Term Gains
  4. Convenience