What is SIP in mutual funds? What are benefits of SIP investment?

  • SIP stands for Systematic Investment Plan, a quite popular term you shall hear in any discussion on investing in mutual funds. In fact, SIP in mutual funds has gained a lot of traction in the past few years that people are curious to know all about it.
    So, if you wish to invest small but regular amounts in a mutual funds scheme, SIP is the common way to do it. You can invest a fixed amount of your choice and set a specific date for investing your money monthly, bi-monthly or fortnightly.

    What are benefits of SIP investments or investing in SIP in mutual funds?

    • You can start regular investments even with a nominal amount like Rs.500-Rs.1000 as well. You don't have to worry of having a lumpsum to invest. Small but regular initial investments anyways help to accumulate a good corpus.
    • A financially disciplined life with regular savings and long term investment planning.
    • Explore better returns as compared to traditional alternatives. But, this is subject to market risks.
    • Earn through power of compounding and grow your money in a systematic manner.
    • You can also modify SIP amount on a periodic basis as per your convenience.
      If you are looking for disciplined investment options, starting an SIP might prove fruitful in the long run.

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