When an investor chooses to invest a fixed amount periodically in a certain fund that is known as SIP. Investments can be monthly or Quarterly. A few Fund houses also accept daily and weekly SIP’s. Hence, SIP is not an investment, it’s a mode of investment.
SIP is a great enabler and SIP is a smart & hassle-free mechanism for investing in Mutual Funds. It disciplines investors to invest a fixed, pre-determined amount.
SIP not only helps you build wealth but also instills the habit of savings. In short, SIP is a simple and smart way of investing in mutual funds. Minimizing risk and creating wealth.