SIP is the new buzz word in the Mutual Funds universe. It helps you become a disciplined investor by cultivating a habit of investing regularly.

Investors are excited and eagerly venturing into this option over the traditional fixed income products like Fixed Deposits. Particularly, those investors who want to experience the stock market but don’t have the required time, prefer investing through an SIP in different mutual fund schemes.

And why not? After all equity based mutual funds are an asset class which could help an investor to generate wealth over the long term and beat inflation. Investment through an SIP in a mutual fund generates potential wealth and is also a pocket friendly way to achieve your financial goals.

Since SIPs require a certain amount to be invested at periodic intervals, the ups and downs in the market rates are averaged over a period of time with the advantage of Averaging. Similarly, since the corpus grows steadily in size and remains invested for a substantial period of time, you may make more in proportion to what you had originally invested, with the Magic of Compounding.