What is a SIP?
Systematic Investment Plan, or SIP, offers you an opportunity to generate wealth, with a disciplined and systematic approach, to meet your financial goals.
It is a tool that offers you the option of investing in various mutual fund schemes at regular intervals and in lower amounts as well.
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How frequently do you need to invest in a SIP?
- You can choose to invest a fixed amount in mutual fund schemes on a daily, weekly, monthly or quarterly basis.
- What is the minimum amount for starting a SIP?
- The minimum amount to start a SIP is INR 500 per month.
- Where does the money put through SIP get invested?
- The amount invested through SIP gets mobilised in a mutual fund scheme (Equity, Debt or Hybrid) as per the investor’s preference and the scheme they have selected. It also gives investors the option to invest in markets without getting worried about market volatility.
- How is a SIP different from other savings tools?
- SIP is more like a disciplined and regular way of investing. However, unlike traditional fixed income products where the return is fixed, SIP in Mutual Fund schemes like Equity or debt funds, returns are variable driven by the market or interest rate movement.
In terms of mechanism, SIP works like a periodic investment where one invests a fixed amount every month/quarter.
SIP inculcates financial discipline and is a great tool for wealth creation to realise your financial goals in the long term.
So what are you waiting for? Start investing today!