SIP confuses a lot of people, whether it is a plan offered by the market or it is a mutual fund.
What is it actually?
SIP stands for Systematic Investment Plan.
Mutual funds and SIP are not synonyms. SIP is only a tool that helps an investor in investing mutual funds.
Thanks to demonetization
Many people come across SIP and Mutual funds because of it. And campaigns like Mutual Fund Sahi Hai also played a major role.
Coming back to the topic
It does help investors investing money in mutual funds but not in a large amount in single equity.
They believe that investing money over a period depending on a regular basis is a better way to invest in equity mutual funds and it helps in avoiding catching the market at a certain level.
Two benefits actually
First, it will bring financial discipline in your life.
And second, it helps you investing regularly without hustling of market ups and down.
The eighth wonder of the world
People usually call it the eighth wonder of the world, as it has the power of compounding
Would not it be great if your investment return also provide you with some return
Well, when you invest over a long period and earn returns on the returns earned by your investment will help to make big financial
plans in future.
It helps you in achieving it.
And one can invest minimum to a minimum amount in mutual funds through it which is Rs 500
Even one can customize its own plan
Also, Step-up plan is available
In which one can increase the amount on a regular basis
Moreover, Alert it is also present which notify when the market will go down.
There is no end date in regular SIP investment, once the goal is achieved one van stop investing by sending a written letter to the fund house