SYSTEMATIC INVESTMENT PLAN


    SIPs allow investors to save regularly with a smaller amount of money while benefiting from the long-term advantages of dollar-cost averaging (DCA). By using a DCA strategy, an investor buys an investment using periodic equal transfers of funds to build wealth or a portfolio over time slowly.

A systematic investment plan (SIP) is a plan where investors make regular, equal payments into a mutual fund.


Mutual funds and other investment companies offer investors a variety of investment options including systematic investment plans. SIPs give investors a chance to invest small sums of money over a longer period of time rather than having to make large lump sums all at once. Most SIPs require payments into the plans consistently—whether that's weekly, monthly, quarterly. Mutual funds and other investment companies offer investors a variety of investment options including systematic investment plans. SIPs give investors a chance to invest small sums of money over a longer period of time rather than having to make large lump sums all at once. Most SIPs require payments into the plans consistently—whether that's weekly, monthly, quarterly.

Reference: Investopedia

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