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

What Is Systematic Investment Plan (sip)?

By Author: Shashank Pawar
Total Articles: 30

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: 33Word Count: 562See All articles From Author

Investing / Finance Articles

1. Everything You Need To Know About Home Loans
Author: Rudra Raghavan

2. What Loan Options Available In 2019 For Money Needs?
Author: Dwayne Johnson

3. Got Stuck? Try These Actionable Tips To Streamline Your Job Search
Author: Akash Rathore

4. Closing Credit Cards - What You Need To Know Right Now
Author: Darren Burgess

5. Stock Market Tips For Tomorrow To Focus Before Investing Your Money
Author: Akash Rathore

6. Options For Short Term Business Loans To Buy Vehicles
Author: Secured Lending

7. Fixed Deposits - How To Open One
Author: Natasha Raikar

8. 5 Facts To Keep In Mind Before Investing In High Interest Fixed Deposits
Author: Natasha Raikar

9. 6 Reasons Why Fixed Deposits Are The Best Way To Save Money
Author: Natasha Raikar

10. 4 Best-fixed Deposit Interest Rates In 2018
Author: Natasha Raikar

11. How To Open A Current Account?
Author: Vani Malhotra

12. 5 Types Of Current Accounts In India
Author: Vani Malhotra

13. 4 Advantages And Features Of A Current Account
Author: Vani Malhotra

14. Faqs On Pmay Scheme
Author: Kaivalya Borde

15. How Does The Pmay Calculator Function?
Author: Kaivalya Borde

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