Mutual Fund SIP
Mutual Funds are financial instruments. These funds are collective investments which gather money from different investors to invest in stocks, short-term money market financial instruments, bonds and other securities and distribute the proceeds as dividends. The Mutual Funds in India are handled by Fund Managers, also referred as the portfolio managers. The Securities Exchange Board of India regulates the Mutual Funds in India. The unit value of the Mutual Funds in India is known as net asset value per share (NAV). The NAV is calculated on the total amount of the Mutual Funds in India, by dividing it with the number of units issued and outstanding units on daily basis.
Systematic Investment Plan (SIP) is an investment route offered by Mutual Funds wherein one can invest a fixed amount in a Mutual Funds at regular intervals say once a month or once a quarter, instead of making a lump-sum investment. The instalments amount could be as little as Rupees 500 a month and its similar to a recurring deposit. It's convenient as you can give your bank standing instructions to debit the amount every month.
SIP has been gaining popularity among Indian Mutual Funds investors, as it helps in investing in disciplined manner without worrying about market volatility and timing the market. Systematic Investment Plans offered by Mutual Funds are easily the best way to enter the world of investments.