Jay Sitaram Credit Co - Operative Society Limited - Junagadh 
A Systematic Investment plan is an investment vehicle offered by mutual funds to investors, allowing them to invest small amounts periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quartely.
A Systematic Investment plan or SIP is a smart and hassle free mode for investing money in mutual funds. SIP allow you to invest a certain pre - determined amount at a regular interval. A SIP is a planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future.
A SIP is a flexible and easy investment plan. your money is auto - debited from your bank account and invested into a specific mutual fund sceme. you are allocated certain number of units based on the ongoing market rate for the day. Every time you invest money, additional units of the scheme are purchased at the market rate and added to your account.
An SIP is an ideal way of investing in the mutual funds. It allows the investor to invest in regular intervals. It is a planned way of investing, which helps cultivate the habit of savings and accomplish the goal of wealth generation.
Under SIP, one can invest on a quarterly, monthly or weekly basis as per their convenience. A fixed amount is auto - debited from the policyholder's account and invested in mutual funds. A pre - decided number of units are allocated at the current market price. Since these plans are flexible in nature, the investors can increase the amount or descontinue investing in the plan whenever they wish to.
Systematic Investment Plan (SIP) works more or less like a mutual fund. The handling of your money is done by money market experts and is none of your headache. But it is good to know how SIP makes your money grow. well, there are two underlying mechanisms behind the working of SIP.
With SIP, you can invest a fixed amount in mutual funds step - by - step monthly or quartely over a period of time, thereby averaging out your cost of investing helping your money earn money over the years. SIP is a method of investing a fixed sum, regularly, in a mutual fund scheme. SIP allows one to buy units on a given date each month, so that one can implement a saving plan for themselves.
The biggest advantage of SIP is that one need not time the market. In timing the market, one can miss the larger rally and may stay out while markets were doing well or may enter at a wrong time when either valuation have peaked or markets are on the verge of declining. Rather than timing the market, investing every month will ensure that one is invested at the high and the low, and make the best out of an opportunity that could be tough to predict in advance.
