Systematic Investment Plan

Systematic Investment Plan (SIP) is a facility offered by mutual funds to investors to invest in a disciplined manner. SIP means a specific amount of money is invested in mutual funds at predefined intervals. You can start by investing as low as Rs 500. The predefined intervals can be weekly, monthly, quarterly, semi-annually and annually. SIP is a good option for investors to invest in mutual funds and gain decent returns in the long term.

How does SIP work?

SIP works on the basis of periodic and consistent investments like a recurring deposit. Through SIP you can invest in any kind of Mutual Fund Schemes, which helps to create wealth over a long term. Since SIP investments are made in specified intervals, your cost of the units gets averaged during all your investment days. The best part about SIP is that you can withdraw your money at any time which makes it similar to a recurring bank account.

When to invest in a SIP?

There is no right time to invest in a mutual fund SIP plan. The longer your investment, the lessor the risk. We would suggest that you start as soon as possible to increase your chances of getting higher returns. Apart from that, we would also recommend that you look for a low-risk profile which offers better prospects for higher returns for your investments. SIPs are subject to market risks. You can look for the high return SIP plan and best return SIP plan.

Types of Systematic Investment Plans (SIP)

If you are planning to invest in SIP best plan then it is important to know about the different types of SIPs that are there: -

• Regular SIP
• Flexible SIP
• Top-up SIP
• Trigger SIP
• Perpetual SIP

Benefits of investing in SIP

SIPs offer a lot of benefits in comparison to other investment options. This is the reason why more people are investing in SIPs. Here is a list of benefits of investing in SIP:

Simple

SIP systematic investment plan is quite simple since you can start your investment with as low as Rs 500. You don't need a lot of technical knowledge to monitor the performance of your SIP.

Flexible

SIP is an open-ended investment which means you can invest any time you want and withdraw any time you want. There are no restrictions imposed on the investor when it comes to investing in SIP.

Higher Gains

In comparison to traditional investment options such as fixed deposits, SIPs give higher profit margins on your investments. The best part about investing in SIPs is the compounding interest that ensures higher gains.

SIP Calculator

The SIP calculator is an online tool that can be used to calculate the returns on your investments in SIP.