Finance 101: What is an SIP? How to invest as a beginner?

English lifestyle Aug 17 2024 Author: Ishwi Singh Image Credits:Freepik

What is SIP?

English Systematic Investment Plan (SIP) lets you invest a fixed amount regularly in mutual funds, helping build wealth over time. Image credits: FREEPIK

Benefits of SIP

English Rupee cost averaging reduces the impact of market fluctuations by buying more units when prices are low and fewer when high. Image credits: Pinterest

How SIPs Work

English Invest a fixed amount regularly, and it’s automatically deducted and invested in your chosen mutual fund. Image credits: Freepik

Choosing a Mutual Fund

English Pick a fund that aligns with your goals, risk tolerance, and investment horizon (equity, debt, hybrid). Image credits: Freepik

How to Start

English Open a mutual fund account, complete KYC, and set up SIP through an AMC or online platform. Image credits: Freepik

Setting Up SIP

English Choose a fund, decide the investment amount and frequency, and link your bank account for automatic transfers. Image credits: social media

Monitor and Adjust

English Regularly check your SIP’s performance and adjust the investment amount or fund choice as needed. Image credits: Freepik

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