What is SIP?

SIP stands for Systematic Investment Plan. With SIP you can investment a fixed amount of money into mutual funds every month. This is similar to recurring deposits.

SIP is a great way to start investment because:

  • EMI: This is investment into Mutual Funds, with the ease of EMI as you are investing a small amount every month
  • Easy: This is the easiest way to start investing in mutual funds
  • Security: Since you invest every month effect of market fluctuation gets nullified. Thus providing you steady returns in long term
  • No binding: You can stop the SIP anytime you want with the click of a button. There is no lock in for any kind
  • Big Savings: A small amount is deducted every month from your account which in turn gets accumulated into big savings
  • It is a disciplined saving habit
  • It is great for salaried professionals with regular income