Financialyatra

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What is SIP ?

SIP stands for “Systematic Investment Plan” in the context of mutual funds. It’s a method of investing in mutual funds where an investor contributes a fixed amount of money at regular intervals (usually monthly) instead of making a lump-sum investment.

SIP offers several advantages:

1. Disciplined Investing: It encourages disciplined investing by automating regular contributions.

2. Rupee Cost Averaging: SIP allows you to buy more units when prices are low and fewer units when prices are high, potentially reducing the average cost of your investments over time.

3. Compounding: Over the long term, the power of compounding can help your investments grow significantly.