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Systematic investment plan

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SIP claims to encourage disciplined investment. SIPs are flexible; the investors may stop investing in a plan anytime or may choose to increase or decrease the investment amount. SIP is usually recommended to retail investors who do not have the resources to pursue active investment.
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In SIPs, a fixed amount of money is debited by the investors in bank accounts periodically and invested in a specified mutual fund. The investor is allocated several units according to the current
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as the investor is getting more units when the price is low and fewer units when the price is high. In the long run, the average cost per unit is supposed to be lower.
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The strategy claims to free the investors from speculating in volatile markets by
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to investors, allowing them to invest small amounts periodically instead of
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"Systematic investment plan"
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mutual funds
lump sums
Net asset value
dollar cost averaging
Recurring deposit
Dollar cost averaging




"What is a Systematic Investment Plan? How does it work?"
The Times of India
Category
Investment funds

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