What is a Systematic Investment Plan?
Unit holders can benefit by investing specified rupee amounts at regular intervals for a continuous period. The SIP allows the unit holders to invest a fixed amount of rupees at regular intervals for purchasing additional Units of the Schemes at NAV based prices. This concept is called Rupee Cost Averaging.
Ans: Systematic Investment Plan is a method of investing into a scheme at regular intervals over a defined time frame. The investor can invest monthly or quarterly depending upon the SIP frequency opted. Since, a fix amount is invested regularly, the investor is able to get more number of units in the falling market and fewer units when the market is on the rise. This helps the investor to smoothen out the market fluctuations and the investment will be at a low cost over a period of time. This strategy in investing is called “Rupee Cost Averaging”.
