What
is Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a simple method of
investing, used across the world as a means to accumulate
wealth. It works the same way as a recurring deposit account.
SIP involves investing a fixed sum of money in a specific
investment scheme, on a regular basis, for a pre-determined
number of periods.
What
are the advantages of investing in SIP?
-
Helps you
to invest disposable funds each month.
-
Gives you
the benefits of rupee-cost averaging
-
Relieves
you of trying to time the market
-
Helps you
to reach your financial goals
How
do I apply for SIP?
-
Fill up a
single SIP form, and a single application form.
-
Draw
post-dated cheques (minimum 5 cheques).
-
Per cheque
minimum SIP amount, there are many funds that have their
minimum amount as low as can be as low as Rs 500/-
-
Auto Debit
Facility
Are
there any minimum amount limits for subsequent purchase in
same scheme?
Yes, there is a minimum amount limits for subsequent purchase
in same scheme.