InvestorQ : One of my friend started investing in SIP. Can anyone tell what is SIP?
leah Diaz made post

One of my friend started investing in SIP. Can anyone tell what is SIP?

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Ishita Jain answered.
3 years ago
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As the name suggests, Systematic Investment Plan or SIP is a systematic way to invest in Mutual Funds (MF) at a regular interval. This interval is pre-determined by the investor and can be weekly, monthly, quarterly, etc. Through SIP, one can not only develop the habit to save but also plan for wealth creation in longer-run.

The SIP installments can be as low as Rs. 1000 to Rs. 5000 and more. Mutual fund company buys units depending upon the prices of the script from the money invested by the investor at regular interval. This way units in every investor's account keep accumulating. These transactions of units bought by MF for each investor is kept accounted and informed, thus giving 100% of transparency.

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