Systematic Investment Plan (SIP) is an investment route offered by Mutual Funds wherein one can invest a fixed amount in a Mutual Fund scheme at regular intervals– say once a month or once a quarter, instead of making a lump-sum investment.
The installment amount could be as little as INR 500 a month and is similar to a recurring deposit.
With SIP one can invest in a disciplined manner without worrying about market volatility and timing the market. Systematic Investment Plans offered by Mutual Funds are easily the best way to enter the world of investments for the long term.
Based on one risk appetite we can invest in various investments consisting of low to high risk. Normally the returns are higher than Fixed deposits and bonds. However, the investment is subject to market risk.