Systematic Investment Plan (SIP) is a mode of investment that allows you to invest a certain sum in Mutual Fund, at predetermined dates, through the auto-debit system from your bank account. The units are the purchased at the prevailing Net Asset Value (NAV).
SIP investment helps in building healthy fiscal discipline. This mode of investment helps you to accumulate wealth and achieve your financial life goals through a planned and well-defined approach.
When you invest in Mutual Funds through SIP, you can benefit from ‘Rupee cost averaging’. This means you buy a larger number of units when markets are low and a smaller number of units when markets are high. This averages out your total cost.
However, before you start your SIP online, it is important to conduct a thorough research about the best SIP plans in India and to be informed about factors like SIP returns, type, tenure, etc.
ICICI Bank Limited is an “AMFI - Registered Mutual Fund Distributor”
Benefits of SIP (Systematic Investment Plan):
Building Financial Discipline:
Securing long-term financial gains:
Flexibility:
Systematic Investment Plan (SIP) is an investment tool that promotes financial discipline by encouraging individuals to invest regularly. With SIP, investors commit to investing a fixed amount at regular intervals, helping them build a habit of saving and investing over time.
SIPs help secure long-term financial gains by providing the benefit of rupee-cost averaging and mitigating market volatility risk. Investors can accumulate wealth over time by investing a fixed amount regularly, leading to potential long-term financial gains.
SIP offers flexibility to investors by allowing them to choose the investment amount, frequency, and duration based on their financial goals. Investors can also modify or pause their SIP investments, providing them with the flexibility to adapt to changing circumstances.
Recommended Products
SIP
Diversify your investment portfolio with Mutual Funds
Fixed Deposit
Opt for a FD account and let your savings grow
PPF
Start retirement planning with Public Provident Fund
iWish
iWish is a unique online Goal based savings
NPS
Plan for retirement & save tax with National Pension System
Popular SIP FAQs
An SIP allows investors to invest a fixed amount at regular intervals, usually monthly. The amount is invested in a Mutual Fund scheme of the investor's choice. Over time, the investment generates returns based on the fund's performance. SIPs enable investors to benefit from compounding.
The minimum amount to invest in an SIP may vary depending on the Mutual Fund. Typically, the minimum amount can range from as low as Rs 100 to Rs 500 per month.
A Top-up SIP is an option provided by Mutual Fund companies to increase the amount of monthly investment in an existing SIP. It allows investors to increase their investment amount by a fixed amount or a percentage of the original SIP amount. This feature enables investors to increase their investment amount as their income and savings grow, helping them to achieve their financial goals faster.
Investing in SIP Mutual Funds provides several benefits, including disciplined investing, rupee cost averaging, power of compounding, flexibility and diversification. SIPs allow investors to start with a small amount, reduce the impact of market volatility and beat inflation. It has relatively higher liquidity as compared to other financial instruments. So, it generates higher returns in the long run.
