For someone who is new to the world of investing and finance, there’s a lot of information spread across various media which can sometimes be misleading. Reaping benefits out of your investments need proper planning, without which things can backfire and put you in an unfavorable situation. One has to go through accurate information and then step into investing. One of the most popular methods of investing is stock trading, however before you can benefit from it, you have to study about the company you are investing into in depth by looking into their balance sheets, learning what the financial ratios indicate and finally study the market accurately to find a decent entry point which can give you the desired results. This is however a tedious job for many who don’t have the time to go through the nitty-gritty’s of this space, so there’s a better option which can yield the desired results but with the help and support of market experts in the form of Mutual Funds. 

Investing in Mutual Funds is the easiest way for an investor who does not want to spend his time and resources constantly checking the standing of the companies he is investing into, like stocks. Here, a fund manager takes up the task of constantly keeping a watch on the markets, studying it in detail and then investing your money appropriately which suits your investment goals. They are in charge of making decisions and investing your money. Some investors stay away from investing large amounts and that’s where Systematic Investment Plan (SIP plans)come into the picture, which is a disciplined way to invest in Mutual Funds at regular intervals.

What is SIP?

Systematic Investment Plans (SIPs) is an arrangement where you invest a fixed amount in a Mutual fund of your choice at specific intervals. This is one of the best methods to see your money grow big with time via Mutual Funds. In finance you have to learn everything in detail, read the full article on – what is sip? on ET Money

How to Invest in SIP?

You can start with an investment amount of as less than Rs.500 per month, which is automatically deducted from your bank account. This is extremely beneficial for those who want to start investing small amounts regularly.

 How SIP Works?

Through SIPs investors are purchasing Mutual Fund units across a market cycle which averages out the cost of purchase, tiding over the market’s volatility. Furthermore, SIP allows one to buy units on a given date each month, so that one can decide and implement their saving plan and budget their expenses more efficiently. One of the biggest advantages of SIP is that you don’t need to time the market.