Basics of investing in SIP

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A Systematic Investment Plan or SIP is an organized way of investing in capital or secondary markets. Investors need to select the amount and the frequency of investment. The amount and the frequency remain the same throughout (unless otherwise instructed by the investor

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Investors can start an SIP with only Rs. 500

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Investors can gradually invest a certain sum in mutual funds on a monthly or quarterly basis over time, averaging out the investment costs and taking advantage of compound interest

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If one stops an SIP in between, then it takes away magic of compounding of equity wealth and compromises on goals

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SIP is more convenient than other investment options since you do not need to transfer money every month. You may issue post-dated cheques or give standing instruction to your bank, and the SIP amount gets automatically deducted from your account every month or quarter

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The majority of investors struggle to continue investing for an extended length of time after they begin. SIPs by their very nature increase your investing journey's discipline.

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