SIP or Systematic Investment plan is a smart method of investing. This method of investing
builds greater wealth through the small contributions. It has become very popular due to its
obvious benefit and ease. Today, almost all the mutual fund companies give the option of
investment through the systematic investment plan. Even mutual fund companies relaxed some
of their criteria for SIP.
What Is SIP or Systematic Investment Plan
Suppose, this year, you want to invest 1.2 lakh in the Axis long term equity fund for the tax
saving. You can invest in this fund through these two methods.
1. You save Rs 10,000 every month for the investment. You keep your saving in the saving
account and invest the total 1.2 lakh at the end of the year.
2. You start investing from today and invest Rs 10,000/month in axis long term equity fund
In both of the method, you invest total 1.2 lakh in a year.
The first way of investing is called the lump sum investment. While the second method is
Systematic Investment Plan.
This is a partnered post.
Updated Date: Dec 30, 2016 17:45:23 IST