Invest in installments – a good and effective way of creating wealth for the long term.
SIP is for investors who do not have enough money but aim to build wealth over a long period and want a better future for themselves and their dependents. This plan helps investors to invest a small amount every month for a specific period. With SIP, investors can take advantage of the stock market fluctuations and get more units when the market is down and fewer units when the market is up.
The objective of this scheme is to help investors invest a small amount every month and build wealth over a long period and have a better future for themselves and their dependents.
Benefits of the Plan
The SIP provides investors a way to invest in the fund of their choice in installments. It is a good and effective way of creating wealth for long term.
For example, if an investor plans to invest Rs.24,000/- in a fund but is not able to invest the entire amount immediately, through the SIP plan, the investor can contribute Rs.2000/- monthly for a year. At the end of the year, the investor would have invested Rs.24,000/- in the fund. When the NAV is high, the investor will get less number of units and when the NAV is low, the investor will get more number of units. Thus based on the NAV, the investor gets the benefit of averaging through SIP.
Investors can use this SIP facility in all the mutual fund schemes except liquid funds, cash funds, and for very short fixed return schemes.