SIP Investment

SIP or Systemic Investment Plan is a route offered to the investors to assist them in investing in mutual funds. It is a process that is incorporated in mutual fund schemes for the convenience of the investors, wherein they can pay a certain fixed amount at regular intervals monthly or quarterly. It is similar to a recurring deposit, but for mutual funds. For investors looking to invest little sums of money periodically rather than lump-sum at once, SIPs are the perfect fit.

What is SIP Investment and What are its Benefits? 
SIP investments are basically the fixed amount the investor has to pay for the mutual funds they have invested in. On the basis of Compound Interest, this helps the investors in reaping a higher return compared to using no SIP. The best feature of a SIP is that the investor can choose to pay any amount of their liking for their scheme, and the duration of the plan too. Investors can invest 500 RS per month or 10,000 RS per month, whichever they like.

How much to invest in Mutual Funds
One can choose to invest any amount they’d like in multiple mutual fund schemes. You must set your financial goals, and determine if they are long term or short term. With disciplined and low-risk strategies incorporated in SIPs, you have the option to invest in multiple mutual fund schemes and keep track of their performance to determine which ones are worth keeping and which ones aren’t.

Points to keep in mind for engaging with SIP in Mutual Funds

• You can choose the amount you have to pay for your mutual fund schemes.
  
• You can choose the from weekly, monthly, or quarterly options to pay your deposits
  
• You can choose the duration of your SIP
  
• You can choose to withdraw from your SIP and still continue your engagement with the mutual fund scheme the SIP was used in, with no additional charges.
  
• One SIP can be incorporated in multiple mutual fund schemes.

SIPs have become one of the most prized commodity in the marketplace for investors. They help the investors in not only gaining higher returns but also makes investing in mutual funds reachable to a whole new set of people. The key here is regularly investing for longer period of time to reap higher benefits from your investments.