Systematic Investment Plan - Basic Knowledge
SIP - Systematic Investment Plan 1. What Is a Systematic Investment Plan (SIP)? Systematic Investment Plan (SIP) is a method of investing in mutual funds where an investor selects a mutual fund scheme and invests a fixed amount at regular intervals (e.g., daily, weekly, monthly, or yearly). SIP investment involves investing a small amount regularly, leading to higher returns compared to a lump-sum investment. 2. How Does SIP work? After applying for one or more SIP plans, the amount will be automatically debited from your bank account and invested in the purchased mutual funds at regular intervals. You will receive units of mutual funds based on the mutual fund's Net Asset Value (NAV). When you invest in a SIP p...