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Saturday, September 4, 2010

What is SIP? And why to go for it?

In Systematic Investment Plan(SIP) , investor invests specific amount for a continuous period at regular intervals.

SIP is similar to recurring deposit scheme; only difference is, in the former, money is invested in MF.

Investors get more unit in declining market and lesser units in rising markets.

The biggest advantage of SIP over lump sum investment is the safety from wild swings of the market.

As the market is ruled by minority of people with majority of money, wild swings can’t be denied.

It is best for risk-averse investor to invest through SIP route.

You may also like: SIP Vs. VIP

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