FINANCIAL AWARENESS

SIP or Systematic Investment Plan is a method of investing in mutual funds. Under the SIP investment method, an investor picks a mutual fund scheme and decides to invest a certain fixed amount at fixed intervals. Investing in one scheme through small installments over time (rather than with a large amount at once) is a Systematic Investment Plan.

For example : Mr. Anand wishes to invest ₹25,000 in a mutual fund but does not have this amount ready to invest at the moment. Mr. Anand can invest ₹2,500 per month for the next 10 months, so the eventual total value of his investment will be ₹25,000. In this way, Mr. Anand has fulfilled his investment goal and also gained many benefits - such as Rupee Cost Averaging, budgeting, etc. (which are explained below). This method of investing a fixed amount over time for a particular goal through a particular mutual fund is called Systematic Investment Planning or SIP.