What is SIP (Systematic Investment Plan)?
- SIP is a method that allows the investor to regularly invest a fixed amount of money in a mutual fund.
- A fixed sum is deducted from the investor’s Savings Account at regular intervals to buy more units of the fund at their Net Asset Value.
- The frequency of the SIP maybe weekly, monthly, quarterly, etc. depending upon investors choice.
- It is similar to Recurring deposit but in SIPs, the money is invested in mutual funds and not in a bank