What Is a Systematic Investment Plan (SIP)?

A Systematic Investment Plan (SIP), more popularly referred to as SIP, is a facility offered by mutual funds to the investors to take a position in a disciplined manner. SIP facility allows an investor to invest a fixed amount of money at pre-defined intervals within the selected mutual fund scheme. The fixed amount of money are often as low as Rs. 500, while the pre-defined SIP intervals are often on a weekly/monthly/quarterly/semi-annually or annual basis. By taking the SIP route to investments, the investor invests in a time-bound manner without fear about the market dynamics and stands to profit within the long-term because of average costing and power of compounding.

Benefits of SIP Investing

SIPs provide investors with a range of advantages. The first, and most blatant, benefit is that when you set the quantity you would like to invest and the frequency, there’s not much more to try and do. Since many SIPs are funded automatically, you only need to make sure the funding account has enough money to cover your contributions. It also allows you to use a little amount so you do not feel the consequences of an enormous lump sum being withdrawn all at once.

  • “Set it and forget it”
  • Imposes discipline, avoids emotion
  • Works with small amounts
  • Reduces overall cost of investments
  • Risks less capital

Mutual Fund Investment Calculator

Mutual Fund Investment Calculator

      


Monthly Investment ❓

Number of Years ❓

Expected Rate of Return ❓


Result:-  

     ,Total Investment 💸  Rs. =  

At % Return Rate   ,Wealth Gain 💸  Rs. =  

After Year ,Your Maturity Value 💸 Rs. =