SIP Investment

The Systematic Investment Plan (SIP) is a simple and time honored investment strategy for accumulation of wealth in a disciplined manner over long term period. The plan aims at a better future for its investors as an SIP investor gets good rate of returns compared to a one time investor.

What is Systematic Investment Plan

A specific amount should be invested for a continuous period at regular intervals under this plan.
SIP is similar to a regular saving scheme like a recurring deposit. It is a method of investing a fixed sum regularly in a mutual fund.
SIP allows the investor to buy units on a given date every month. The investor decides the amount and also the mutual fund scheme.
While the investor’s investment remains the same, more number of units can be bought in a declining market and less number of units in a rising market.

What Are the Benefits Of SIP For The Investors?

It compounds your money in the long term.

The power of compounding underlines the essence of making money work if only invested at an early age. The longer one delays in investing, the greater the financial burden to meet desired goals. Saving a small sum of money regularly at an early age makes money work with greater power of compounding with significant impact on wealth accumulation.

Rupee Cost Averaging

Timing the market consistency is a difficult task. Rupee cost averaging is an automatic market timing mechanism that eliminates the need to time one’s investments. Here one need not worry about where share prices or interest are headed as investment of a regular sum is done at regular intervals; with fewer units being bought in a declining market and more units in a rising market. Although SIP does not guarantee profit, it can go a long way in minimizing the effects of investing in volatile markets.


SIP can be operated by simply providing post dated cheques with the completed enrolment form or give ECS instructions. The cheques can be banked on the specified dates and the units credited into the investor’s account. The SIP facility is available in the Principal Income Fund, Monthly Income Plan, Child Benefit Fund, Balanced Fund, Index Fund, Growth Fund, Equity fund and Tax Savings Fund

It makes you well-organized in your investments
Various funds do not charge an entry load if you opt for an SIP.
Reduces effect of market timing
Lowers the average cost of purchase
Helps save for different Investment goals
Makes investing more affordable

How SIP Works??

In SIP, an investor invests a pre-defined amount in a scheme on identical intervals at the then prevailing NAV. By investing through this route the investor actually ends up with more number of units and hence can get more returns at their disposal. This happens due to the reduction in average cost of each unit of the scheme that is purchased by buying less units at a higher price and more when the price is low.

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