An SIP (systematic investment plan) allows investors to invest a fixed amount at regular intervals into a mutual fund. Primarily, SIPs or Systematic Investment plans are simply investing small amounts regularly.
The major benefits of an SIP are:
- It is a flexible investment option for any investor as they are allowed to choose the amount to invest, frequency of the investment, and duration of the investment. It is a convenient solution for investors who do not have a lump sum capital ready in hand.
- An investor can start investing with an amount as small as Rs.100/- per month
- It instils a disciplined habit of investment among individuals - where he or she will have to set aside a fixed sum of money for each day, week, month, or quarter, according to
