What is a Systematic Investment Plan(SIP)

A SIP (Systematic Investment Plan) is a mutual fund investment method. You can invest a fixed amount of money daily, monthly and quarterly through SIP. A specific amount usually monthly can be chosen for a fixed period. The amount you chose for SIP will automatically deducted from your bank account. This amount will be used to buy units in a particular mutual fund. Thus you invest regularly a fixed amount and get units against your investments. Investing in a disciplined way makes your investment easy.

You don’t need any demat account to hold your units. A folio will be generated against your investment. Your folio (statement) will represent all your invested amount and accumulated units you get.

If you are a beginner for mutual funds and don’t have enough money, you can start with SIP (Systematic Investment Plan). It doesn’t require a large amount of money to start with SIP. Infect you can start it with just ₹500. This is the most effective option to create wealth and achieve your financial goals.