What is SIP?
A systematic Investment Plan (SIP), more commonly known as SIP is a mutual fund facility that allows investors to invest in a structured manner. The SIP option allows an investor to set a time frame for when they want to invest in a mutual fund scheme.SIP investment allows investors to invest in a time-bound manner, without worrying about the market dynamics. Investors stand to benefit long-term because of average costing & power of compounding. SIP, or Session Initiation Protocol, is a protocol for signaling to initiate, maintain and terminate real-time sessions. These include voice, video, and data communications. SIP relies on request/response operations. Each transaction includes a SIP (or method) that invokes a particular operation and at minimum one SIP answer.
How Much Cost For A SIP
SIPs offer many choices. There are so many choices that it can be difficult to decide which one is right for you. This is why we have created this SIP comparison tool. The SIP price comparator tool makes it easy to compare the prices of various SIPs. Enter the SIP number you want and we’ll provide a list of prices for you from different providers.
SIP makes it easy to invest in equity mutual funds without timing the stock market. SIP lets you invest in equity fund units at a fixed price, regardless of how the stock markets are doing. It allows you to purchase more equity unit units in times when stock markets crash and less in times when they are rising. By averaging the purchase price for equity fund units over time, you can reduce the impact of fluctuations in the stock market on your investment.
Let’s take an example to show Rupee Cost Averaging: Let’s assume that you invest Rs 1,000 every month through a SIP in an equity fund. Stock markets can be volatile and the Net asset value (NAV), for an equity fund, keeps changing. It also means that you cannot invest at the exact same NAV every month. Imagine if you were to invest Rs 10,000 per month for a year.
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