Systematic Investment Plans

systematic investment plans

Systematic investment plan is a way of investing in mutual funds at a regular interval of time irrespective of its price. Such approach of investment focuses on investing amount set aside within a regular period of time rather than investing a larger lump sum amount in one shot. Thus, with SIP, investor automatically acquires more units when market falls and lesser units when market rises. Thus, it implies that you buy less when the price is high whereas you buy more the price is low.

Benefits of systematic investment plans

1.      By being in habit of regularly keeping aside an amount for investments, SIP plans foster saving habits in customers.

2.      With SIP, you automatically buy less when the price is high whereas you buy more when price is low. Thus, average cost per units slash down over a period of time.

3.      It is very easy to set up an SIP account. It is also one of the most convenient modes of investment as you can issue instructions for the regular transfers of money into your SIP.

4.      Such investment spares you from investing a lump sum amount at peak prices.

5.      One can start investment with amount as minimum as Rs.500 per month to get started

6.      Such investments help you to plan and prepare for your future financial requirements such as child’s education, a marriage in the family or a comfortable postretirement life etc.

Hence, regular small savings with systematic investment plans can go a long way to be your helping hand in future. For more info please visit:- http://www.icicipruamc.com