What is SIP ? (Systematic Investment Plan)
Systematic Investment Plan (SIP) is an investment facility offered by Mutual Funds through which one can invest a fixed amount in a Mutual Fund scheme at regular intervals– (once a month or once a quarter, instead of making a lump-sum investment at once)
The monthly SIP installment amount could be as low as Rs. 500.
This is very similar to a recurring deposit. It’s very easy and convenient as you have to give standing instructions to your bank to debit the amount every month.
SIP is very popular now a days among Indian MF investors, as it helps in investing in a disciplined manner without worrying to much about the market volatility and timing.
SIP is the best way to enter the world of investments for the long term.