What is Systematic Investment Planning?
We all have various financial obligations. Some of them, like daily needs, school fees, etc., involve a significant outgo of your cash. Others, like a trip for your family or buying a fancy gizmo, entail a one-time payment for which money can be collected relatively quickly. But long-term goals like retirement planning or purchasing a home require saving and investing for many years. Yet irrespective of the amount involved and the time horizon, planning and investing money systematically and regularly enables you to sail through these obligations. A SIP is a simple and effective solution for achieving these goals.
A SIP is a method of investing in Mutual Funds by putting in a fixed sum regularly to buy units of a mutual fund scheme. It is similar to a recurring deposit from a bank or post office. For convenience, an investor could start a SIP with as low as Rs 500; however, this amount may differ from one fund house to another.