SIP or Systematic Investment Plan is a plan through which a person can invest a small amount in a mutual fund at regular intervals (monthly/quarterly).
Building wealth requires financial discipline and a long-term horizon for investing. SIPs not only encourage disciplined investing, but also make it possible to accumulate wealth with small but regular contributions. Further, it also gives the advantage of rupee cost averaging and the flexibility of choosing your own amount and frequency, making it an ideal investment option for any investor.
How does it work?
A SIP is a flexible and easy investment plan. Your money is auto-debited from your bank account and invested into a specific mutual fund scheme.You are allocated certain number of units based on the ongoing market rate (called NAV or net asset value) for the day.