Are you looking for a disciplined approach to investing in mutual funds? Look no further than Systematic Investment Plans (SIPs). In this article, we'll explore the world of SIPs, mutual funds, and how they can help you achieve your financial goals.
What is SIP?
A SIP is a popular method of investing in mutual fund schemes. It's a disciplined approach where you invest a fixed amount of money regularly, typically monthly. "Start small, grow big: SIP allows you to invest a limited amount and create a substantial fund for your future needs."
Benefits of SIP
There are multiple benefits of investing via SIP:
- Affordability: Start with a minimum investment of as low as Rs 100.
- Automatic feature: SIPs are automatic, making them the perfect antidote to market volatility.
- Flexibility: SIPs are flexible, allowing for small accumulations and offering compounding advantages.
- Rupee cost averaging: SIPs help you average out your total investment cost.
What is Mutual Fuds?
A mutual fund is an investment product that pools money from multiple investors and invests in a diversified portfolio of stocks, bonds, and other securities. Mutual fund schemes are introduced by Asset Management Companies (AMCs) or fund houses.
Mutual Funds Vs SIP
A mutual fund is a professionally managed investment scheme, while SIP is an investment technique. SIP can be applied universally across mutual funds, public provident funds, fixed deposits, and more.
SIP in Mutual Funds - How they work?
When you invest in mutual funds via SIP, you invest a fixed amount on a regular basis. This amount is debited from your bank account, and you receive mutual fund units as per the current NAV.
SIP Return Calculator
"Compare SIP and lump sum investments with ease using our SIP Return Calculator, and make a decision that suits your needs."
We hope you found this article useful! If you have any questions or need clarification, please ask us in the comment section below.
Ravi Chandra
Mutual Fund Distributor (ARN-317654)
