Systematic Investment Plan (SIP) is an investment medium of Mutual Funds by which an individual can invest a fixed amount in a scheme of Mutual Funds at regular intervals.
This installment can also be a small amount of Rs 500 per month, which is very similar to Recurring Deposit.
This amount is debited every month from your bank account.
SIP has become very popular among Indian Mutual Funds investors.
Because it helps the investor to invest in a disciplined manner by keeping the investor away from worrying about the volatility of the markets.
SIP offered by Mutual Funds for long term investment is arguably the best and easiest way to step into the world of investment.
To get the maximum and best returns from investment, it is very important that you invest for a long period of time.
Which simply means that you should start investing as soon as possible so that your target profit can be maximum.
You can invest in Mutual Funds either through SIP or Lumsum.