123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

What Is Systematic Investment Plan (sip)?

By Author: Shashank Pawar
Total Articles: 34

SIP is a Systematic Investment Plan offered by mutual funds. With this plan, you can invest a predetermined sum of money in the mutual fund schemes at regular intervals. SIP investment is suitable for those who wish to invest little sums of money rather than investing the whole amount at once. The Systematic Investment Plan is similar to a recurring deposit. You can invest a sum as small as ₹500 and also request a debit any month of your tenure.
The most prominent feature of SIP is that you can invest for a long-term despite worrying about the market volatility and market fluctuation. The plan is perfect for every kind of investor. If you are a newbie who is looking for a simple and safe investment route, SIP is the ideal way to start. If you are a seasoned investor, SIP is still the best way to invest some of your returns from other forms of investment.
Before investing in a SIP, you need to set your long-term and short-term financial goals. Once you know what you want, jot down the timeline you wish to and decide on the amounts that you need to invest. The next and most crucial step is to select and buy the perfect type of mutual fund. Here is some mutual fund information that will give you a glimpse to the world of SIP:
How to buy mutual funds? Choosing a mutual fund entirely depends on your financial goals. Before buying a mutual fund, you need to know the various types of mutual funds in the market:

Equity or Growth funds: The investment is done primarily in shares of companies and is suitable for those for whom wealth creation is the only goal. Equity is considered as the best form of long-term investment in mutual funds.

Fixed income funds: The investments are made in the form of commercial papers and debentures, government bonds, or fixed home securities. Fixed income funds are suitable for those who are looking for a stable income generation from mutual funds schemes securities

Hybrid funds: Hybrid funds offer the best of Equity and Fixed income funds. You get a steady income as well as a potential for growth. Some examples are pension plans, monthly income plans, conservative balanced funds, and child plans.

Here are some facts you need to keep in mind while investing in SIP:

Mutual fund investment is not an investment avenue, and the amount you invest is not important. Starting early is the only important aspect while investing in mutual funds.

The most significant benefit of investing in mutual funds is that you have to spend less time and energy to make the right investment.

There is no minimum age limit to save in the mutual funds' scheme. Even kids can open their investment accounts and start investing. Also, you don’t have to wait for the right time and market conditions for investing.

Why wait for the perfect moment when you already have a perfect opportunity to invest in your future right in front of you? Choose mutual funds and never regret!

Before investing in a Systematic Investment Plan (SIP), you need to set your long-term and short-term financial goals. Once you know what you want, the next is most crucial step is to select and buy the perfect type of mutual fund. Visit Mutual Funds Sahi Hai online.

Total Views: 43Word Count: 562See All articles From Author

Investing / Finance Articles

1. How Does National Pension Scheme Work?
Author: Neha Sharma

2. How Is Interest Calculated On A Fixed Deposit?
Author: Neha Sharma

3. How Does International Money Transfer To India Work?
Author: Neha Sharma

4. All You Need To Know About Rtgs
Author: Neha Sharma

5. What Is A Current Account? How To Open A Current Account?
Author: Neha Sharma

6. Us Tax Returns Must Be Followed Whether You Live Here Or Abroad!
Author: US taxes for Americans abroad are now prepared.

7. The Pros And Cons Of Discount Brokers
Author: balaji venkat

8. What Are The Features Of Sukanya Samriddhi Yojana Account?
Author: Neha Sharma

9. How Does A Debit Card Work?
Author: Neha Sharma

10. How To Buy Two Wheeler Insurance?
Author: Neha Sharma

11. What Are The Different Types Of Insurance?
Author: Neha Sharma

12. Mobile Banking: Features And Benefits
Author: Neha Sharma

13. Centuria Capital Ltd Detailed Swot Report
Author: Aarkstore Market Research

14. 3 Steps For Transferring Money From Singapore To India
Author: Shreya Jain

15. What Are The Factors That Affect The Currency Exchange Rate?
Author: Shreya Jain

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: