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.
