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.


  • Mutual Funds is a popular investment option in India. Yes, I agree with the fact that small and regular investments are made by the SIP. You must have a good knowledge of this useful tool if you are a mutual fund investor. Thanks for posting this info folk!



  • @harleen SIP seems to be a disciplined way of investing. Nicely explained! We can start smaller amounts of SIP as per our convenience. This sounds very interesting. There is scope to earn better returns also as compared to other investment options like PPF or post office saving schemes.



  • Hi Kirti, Yes, SIP is surely a disciplined way of investing especially for the ones who wish to invest small amounts regularly. Traditional investment options are losing attractiveness since they are not giving requisite returns. So, people are looking for other ways of investing and earning better.



  • • You can begin with sip investment plan even with a notable sum like Rs.500-Rs.1000 also. You don't need to stress of having a lump sum to contribute.
    • Little yet standard starting speculations in any case help to aggregate a decent corpus. You can likewise change SIP sum on an intermittent premise according to your benefit.
    • Gain through the influence of aggravating and efficiently develop your cash.
    • Get complete information through site Kotak Mutual Funds.



  • @aaryabhaskar why only Kotak Mutual Fund, seems like you work for kotak mutual funds 🙂



  • @aaryabhaskar Is it possible to start investing with such a small amount like Rs.500 only? I thought one needs a good lump sum to start investing in such schemes. Is it possible to withdraw the amount invested easily from such mutual fund schemes? How much is the minimum lock-in period for it? Can you clarify on this. I have heard a lot about mutual funds. But, I am bit scared to put my money in risky things. Will it be safe to put my money in mutual funds? Please guide.



  • A SIP or a systematic investment plan is an investment avenue through which investors can invest a fixed amount regularly in mutual funds. The investment can made either in monthly, quarterly or yearly basis.

    The key benefits of an SIP investment are:

    1. SIP investment lets you leverage the benefits of compounding and rupee cost averaging
    2. It teaches you investment discipline
    3. SIP is a convenient form of investing because it allows you to invest even as little as Rs.500 on a periodic basis
    4. Also when you invest in SIP you don’t need to time the market

    In addition to that there are experienced fund managers to handle your investment.



Disclaimer: Any views/recommendations expressed in the forum, of the individuals are their own only. Fintrakk doesn't endorse or recommend any financial product or views by the users of the forum. The information/comments on the forum should not be considered as a financial advise. Please do your own due diligence before investing. Fintrakk is not responsible for any financial loss to any of its visitor/user.