What is Systematic Investment Plan (SIP)?
Systematic Investment Plan (SIP) is an investment option where a fixed sum of money is invested in a mutual fund at regular intervals. These intervals could be monthly or quarterly depending on investors’ choice. Before starting SIP, investors should identify the best funds and the amount required to achieve the financial objectives. SIP helps investors save and invest periodically over a longer period and get an attractive return at the end. Many investors try to buy stocks at low price and sell at high price to earn profit. But timing the market is very difficult and very irrational and risky.