![]() With SIP investment your money is deployed in a mutual fund scheme (equity schemes and / or debt schemes) and hence your investments are subject to market risk. The method of investing is similar to your investment in a recurring deposit (RD) with a bank, where you deposit a fixed sum of money (into your RD account). It is one of the mode of investing in mutual funds in a systematic and regular manner. Sip full form is Systematic Investment Plan. SIPs too work on the simple principle of investing regularly which enable you to build wealth over the long-term. Yes, those good old days where our parents provided us with some pocket money, which after expenditure we deposited in our piggy banks and at the end of particular tenure we saw that every penny saved became a large amount. The only difference here is, your money is deployed in a mutual fund scheme (equity schemes and / or debt schemes) and not in a bank deposit.Īnd your investments in mutual funds are subject to market risk.Ī SIP enforces a disciplined approach towards investing and infuses regular saving habits which we all probably learnt during our childhood days when we used to maintain a piggy bank. SIP in mutual funds is a method of investing like recurring deposits (RD) with a bank, where you deposit a fixed sum of money regularly. SIP or Systematic Investment Plan is one mode of investing in mutual funds in a systematic and regular manner. To know about more about what is SIP in mutual fund read this and next few guides. One gaining fame over the last few years is the SIP. Mutual fund schemes, as an investment avenue, offer you different modes of investing. You see, mutual funds offer a host of benefits which can help you create wealth and realise long-term financial goals – much like the way Aditya did.īut only a handful of people follow the right financial discipline, while they aspire to reach new heights. ‘Surgical knowledge depends on long practice, not from speculations.’- Marcello Malpighi, an Italian physician and biologist. And now burdened with a huge amount of debt, he found it difficult to repay his loan and monthly EMIs. However, as soon as the markets entered into a bear phase, he had to kick himself out of the market. The short-term gains gave Rahul a winner’s high and he earned good returns. But under the guise of investing, he was speculating! He indulged in momentum playing to make the most of the market movement. On the other hand, Rahul, a Vice-President with a reputed multinational company, followed the market trends and had invested a large sum of money in the funds that were doing well back in the day. He believed in systematic, long-term financial planning and ignored short-term gains. He accomplished this by thoroughly researching and diversifying his portfolio according to his risk appetite. He had a simple plan in mind to achieve all his life goals. He was eager to know his financial success story.Īditya shared how he started his financial journey by making small investments in mutual funds through the SIP (Systematic Investment Plan) route. Rahul was amazed to see the way Aditya had built his business up in the last five years. They were very happy to reconnect and relive memories. One Friday evening, Rahul, his childhood friend, showed up at the restaurant. Definitive Guide To Successful Equity InvestingĪditya, a 35-year-old entrepreneur, runs a chain of multi-cuisine restaurants in Mumbai.10 Steps to Select Winning Mutual Funds.The Complete Guide to Public Provident Fund (PPF).Your Comprehensive Guide to Tax Planning 2019.How To Become A Millionaire With Mutual Fund.Understanding Mutual Funds - Equity, Debt, and Gold.Your Guide To Build An All-Season Mutual Fund Portfolio.Guide To Value Investing With Mutual Funds.Guide to Long Term Wealth Creation With Equity Mutual Funds. ![]()
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