A Systematic Investment Plan or SIP allows us to take advantage of the growth potential of stock mutual funds by making regular investments.
SIP offers many benefits like:
- There is no need to time the markets as you invest at predetermined intervals. This spares you from investing a lump sum amount at peak prices. SIP also allows investing in small amounts, as low as Rs 500.
- Since you invest fixed sums at regular intervals, you pick up more units when the prices are low and less units when the prices are high. This brings down the average cost of your units.
- SIPs inculcate the savings habit in investors.
- SIPs serve as a great financial tool to counter inflation.
Who Can Benefit from SIP?
All those who feel that they are ignorant about the market and can not trade in the market due to their personal or official commitment can take the route of SIP. If you are a die hard trader and want to take a plunge in stock market than none can beat our Jackpot tip which provides you sure shot profit in stock market.
