Systematic Investment Plan (SIP)

Systematic Investment Plan (SIP)

A Systematic Investment Plan (SIP), more popularly known as SIP, is a facility offered by mutual funds to the investors to invest in a disciplined manner. SIP facility allows an investor to invest a fixed amount of money at pre-defined intervals in the selected mutual fund scheme. The pre-defined SIP intervals can be 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 worrying about the market dynamics and stands to benefit in the long-term due to average costing and power of compounding.

SIP is one of the best investment options for able to accumulate a large amount of money in a certain time period. Making an investment in mutual funds through an SIP, will offer you good returns also.

Goal Systematic Investment plan helps the investors to make SIP investments with an objective to meet a pre-assigned Goal like Child education, Marriage, home, retirement etc. Each SIP has an investment objective—a goal or financial result it wants to realize. .... Most fund objectives fit into one of several broad categories, such as growth in value, current income, or a combination of growth and income. Goals may be a mix of short-term, mid-term and long-term goals. These goals, in turn, determine the amount of savings you need to create and how you need to invest to attain the desired goal amount.

Goal set up

  • 1

    Specific – make each goal clear and specific.

  • 2

    Measurable – frame each goal so that you know when you have achieved it.

  • 3

    Achievable – you need to take practical action to achieve a goal.

  • 4

    Relevant – determine whether your goals relate to your life and are realistic.

  • 1

    Power of Compounding

    When you invest regularly through SIP and invest for the long term, the benefits are magnified by the compounding effect. Compounding effect ensures that you earn returns not only on your principal amount (actual investment) but also on the gains on the principal amount i.e. your money grows over time as the money you invest earns returns. And the returns also earn returns.

  • 2

    Rupee Cost Averaging

    Rupee cost averaging is a concept which allows an investor to take advantage of the market volatility. By investing in a SIP, an investor gets more units when the Net Asset Value (NAV) is less and less units when the NAV is high. This brings down the average cost of the units over the long term.

  • 3

    Low initial investment

    It can be an affordable way to invest each month without hurting your wallet. You can increase your monthly investment amount with a rise in your income via SIP step-up feature. Mutual fund houses allow investors to top up their SIPs on a regular basis. You can invest more over the years. This strategy can help you reach your investment goals at a faster rate.

  • 4

    Convenience

    SIP can be a convenient mode of investing. Like most investors, you may not have the time for extensive market research and analysis to adjust or balance your portfolio. So, once you pick a good fund, you can give standing instructions to the bank and let the SIP take care of your monthly investments.

  • 5

    Safety

    SIPs will generate returns by default in the long run. In fact, studies have consistently proven that SIPs in equities held for a period of years almost reduces the downside risk to nil.

Category Returns

Category Last Week(%) Last 1 Month(%) Last 3 Months(%) 1 Year(%) 3 Years(%)
Equity - Contra Fund-0.783.3813.7848.3125.73
Equity - Dividend Yield Fund-1.084.0414.1748.0624.61
Equity - ELSS-1.412.5112.2438.2320.81
Equity - Flexi Cap Fund-1.342.7212.7739.3619.78
Equity - Focused Fund-1.152.8911.737.1719.22
Equity - Large & Mid Cap Fund-1.492.3313.5742.8521.69
Equity - Large Cap Fund-0.73.8711.1833.718.06
Equity - Mid Cap Fund-1.841.6716.6252.3624.78
Equity - Multi Cap Fund-1.572.413.5344.6922.66
Equity - Sectoral Fund - Auto-0.720.53000
Explore More
Locate Us