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Many investors consider SIP (Systematic Investment Plan) as an investment product. However it is an investment mode that used for investing in Mutual Fund. Here is a quick guide that will help you while planning for investing in mutual fund.
A Systematic Investment Plan is an investment mode that helps investors to plan for their future financial needs by regularly investing a fixed amount. The popularity of SIP as an investment mode has seen a rise in the last few years. The reason for the popularity of SIP as an investment mode is because it is one of the most convenient and simplest mediums for investing in Mutual fund schemes. Let us understand how you can use SIPs for investing in various mutual fund schemes and achieve your financial goals in long-run.
SIP stands for Systematic Investment Plan and as the name suggests, this investment tool helps investors in investing in a systematic manner. The SIPs allow investors to invest a fixed sum of money on a regular basis in a mutual fund scheme of the investor’s choice. These mutual fund schemes can be equity schemes, debt schemes or a mix of both equity or debt schemes as per the financial risk appetite of the investor. Investment through SIP is beneficial for generating corpus and achieving financial goals, whether for a long-run or short-run. Investors need to define their financial goals and select the mutual fund scheme as per their financial needs.
With the help of SIP, investors can start investing small amounts for a regular period and reap huge returns. Following are the benefits of investing in mutual funds using SIPs:
On the other hand, one-time investments may lead investors to face loss.
While planning for investing in mutual fund through SIP, it is very important that investors select the SIP that is in sync with their financial goals. The following guide will help you in making an informed and wise decision while choosing the best mutual fund SIP investment:
Thus, investing through SIP is a lucrative option while planning for mutual fund investment. SIP shall help investors to achieve their financial goals and help them in creating wealth.
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