(Last Updated: February 25, 2019)

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



  • @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.



  • @vikas_nair What I like best is that SIP can be started with a small amount like Rs.500 only. I can afford to put this much at least if that can give me better returns.



  • @harleen I am thinking of investing in mutual funds. Heard about SIP a lot. Thanks for these useful details. We can start SIP in mutual funds with a small amount like Rs.500-1000 monthly. This is really great. I was looking to invest but didn't have a lump sum to invest. I already have a PPF account. But, this time I want to invest in other options also.



  • Yes, you can invest small amounts in mutual funds. But, remember these investments are not risk free. You should invest as per your risk taking capability only. Otherwise stick to safe risk free investing options only.



  • @aaryabhaskar That sounds interesting, if one can start SIP with such a small amount like Rs.500 also. What if we miss an instalment? Are there any charges for the same? Do we need to contribute regularly once we opt for SIP plan? Any idea.



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