What is Systematic Investment Plan (SIP) ?
A SIP is a tool that help us to invest regularly & in a disciplined manner. The SIP investment can be weekly, fortnightly, monthly, quarterly etc. It’s just like a regular instalment of investments.
You don’t need to give cheque or do electronic transfer every month. It automatically gets deducted from your bank account through auto debit and gets invested in particular Scheme.
SIP= Good EMI
MR. X started with SIP of Rs 5000 monthly in Equity Scheme of Mutual Fund.
SIP date is 1st of every month.
Expected rate of return is 12% p.a.