#Mutual funds sip meaning how to

By investing the same amount at predetermined intervals. This is a strategy that involves investing a fixed amount of money at regular intervals. SIP offers several benefits to investors: Allows Dollar-Cost Averaging This provides individuals with a range of investment options to choose from, based on their risk appetite and investment goals. This can be made in a variety of asset classes, including equity and debt, and hybrid funds. This ensures that the individual invests regularly and does not miss out on investment opportunities due to forgetfulness or lack of time. Systematic investment plans can be easily automated, which means that the investment amount is debited automatically from the individual's bank account. This can help in building wealth steadily and consistently. Systematic Approachĭue to its systematic approach to investment, it enables individuals to invest consistently over a longer period of time. This makes it a convenient option for those who may not have a large lump sum to invest upfront but want to start investing regularly. SIP allows individuals to invest small amounts of money at regular intervals, such as monthly or quarterly. There are several key features of SIP that make it a popular investment strategy: Allows Small Amounts Key Features of a Systematic Investment Plan (SIP) It is a popular investment option for those who want to accumulate wealth over the long term and also seek to minimize risks associated with market volatility. The purpose of SIP is to enable individuals to invest their money in a disciplined and structured manner over a longer period of time. Systematic Investment Plan (SIP) is an investment strategy in which an individual invests a fixed amount of money at regular intervals in a mutual fund or exchange-traded fund (ETF). Investors are advised to consult their financial advisors before investing.Systematic Investment Plan (SIP) Overview Mutual Funds are subject to market risks. There is no assurance or guarantee that the above funds will give the same returns in future. The scheme tracks S&P BSE 500 Total Return Index, which has given a return of 14.30% in one year.ĭisclaimer: The above content is for information purposes only based on AMFI website data as of June 5, 2023. The direct plan of Bank of India Tax Advantage Fund has given a return of 19.30% while the regular plan has given a return of 17.90% in one year.

The scheme tracks NIFTY 500 Total Return Index, which has given a return of 14.13% in one year. The direct plan of ITI Long Term Equity Fund has given a return of 19.40% while the regular plan has given a return of 17.09% in one year. The scheme tracks S&P BSE 500 Total Return Index, which has given a return of 14.30% in one year. The direct plan of Bandhan Tax Advantage (ELSS) Fund has given a return of 19.52% while the regular plan has given a return of 18.12% in one year. The scheme tracks NIFTY 500 Total Return Index, which has given a return of 14.13% in one year.Īlso Read: What is Total Expense Ratio (TER) of a mutual fund and how it affects your SIP returns? Bandhan Tax Advantage (ELSS) Fund The direct plan of HDFC Taxsaver Fund has given a return of 19.78% while the regular plan has given a return of 19.04% in one year. The direct plan of Kotak Tax Saver Fund has given a return of 19.90% while the regular plan has given a return of 23.57% in one year. The direct plan of JM Tax Gain Fund has given a return of 20.05% while the regular plan has given a return of 18.90% in one year.

The scheme tracks S&P BSE 500 Total Return Index, which has given a return of 14.30% in one year.Īlso Read: How SCSS interest income compares to Retirement Mutual Fund returns in 5 years JM Tax Gain Fund The direct plan of SBI Long Term Equity Fund has given a return of 22.88% while the regular plan has given a return of 22.10% in one year.

#Mutual funds sip meaning how to

How to invest in active mutual funds: Smart ways explained SBI Long Term Equity Fund