What is SIP?
A Systematic Investment Plan (SIP) is a method of investing in mutual funds where an individual contributes a fixed amount regularly, typically monthly or quarterly. SIPs allow investors to buy units of mutual funds at different market levels, averaging out the cost over time (called rupee cost averaging), and promote disciplined, long-term investing. It's a flexible and convenient way to build wealth gradually while minimizing the impact of market volatility.
SIP helps you invest regularly with small amounts, reducing the risk of market ups and downs and growing your money over time. It’s a simple and affordable way to build wealth without needing large sums upfront.
- Immediate Execution
- Convenience
- Personalized Service
- Reduced Errors
- Backup Option
- Enhanced Support
Let's calculate how SIP will aid in your wealth creation
FAQs
Frequently asked questions on SIP
An SIP allows you to invest a fixed amount regularly in mutual funds, promoting disciplined investing.
You can start with as little as ₹1000 per month, with the option to increase the amount as needed.
Rupee cost averaging spreads your investment across different market conditions, reducing the impact of market volatility.
Tax treatment depends on the mutual fund type. Equity funds may qualify for long-term capital gains tax benefits, while debt funds are taxed differently.
Missing a payment doesn’t cancel the SIP. However, it may lead to a delay in investment accumulation and could affect your investment goal.
