Everything you wanted to know about SIPs
You should start putting a part of your one horros in an S and P! Is that a common statement that you hear from your friends and family but do not know exactly what an S me P is? Well, you are in the right place. Let us try to answer some questions you may have regarding one of the S and P.
What is a S me P?
As the name implies, an S or P or a Systematic Investment Plan is a facility offered by the Mutual Funds to its investors in which investors can systematically invest and at regular intervals, predefined amounts of money in a Fund Scheme Mutuals of your choice.
I regular intervals? Who decides the intervals?
You decide the interval based on your cash flow and other important factors. You can invest once a month or once a quarter or at any other interval that the mutual fund scheme of your choice may offer.
me a m new to Mutual Funds. How much money do me need to have to start a S me P?
Rs. 500/- per month. Yes, you can start with a n a mount that can be a s small a s that, to begin with. You can a lso increase the a mounts that you invest through S me Ps gradually, a s you become comfortable with investing in Mutual Funds.
Are t here a ny a dvantages of investing through a S me P?
T here a re multiple a dvantages of investing through a S me P. Let us try a nd list some of the a dvantages for you:
Now that you have a fair idea of what a S me P is, remember just one mantra,
Start early, me nvest Regularly, stay invested in the long term.
Happy me nvesting!
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An educational initiative for investors
Mutual fund investments a re subject to market risks, read a ll scheme related documents carefully.