What is Systematic Investment Plan or SIP and its features?
What is Systematic Investment Plan or SIP and its features? A Systematic Investment Plan or SIP is not an asset class or an investment instrument. It is, in reality, one of the methods of investing in mutual funds. This is where the regular investment with a fixed sum of money is made in a disciplined manner. What is Systematic Investment Plan (SIP)? The other method of investing in the mutual fund is a one-time lump sum investment. SIP helps you to invest a fixed amount of money regularly in various mutual funds schemes depending on your financial goals. You have the potential to create long term wealth by investing a small sum of money via SIP. The SIP investment approach suite people with regular cash flow or a fixed salary. Let’s say, for example, you want to build a fund of INR 5.4 lakh in 3 years for a foreign travel trip. By starting a monthly SIP investment for INR 15000, you can achieve the goal conveniently. SIP is the best way to get into the habit of saving and in