What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a method of investing a fixed sum of money regularly in mutual funds. SIPs allow you to buy units on a pre-determined date every month, quarter, or week, helping you dollar-cost average your investments and leverage the power of compounding.
Benefits of SIP:
- Disciplined Investing: Automates your investment habit.
- Rupee Cost Average: You buy more units when prices are low and fewer when prices are high.
- Power of Compounding: Reinvested returns grow exponentially over time.