If you are new to the world of investing, you must be well-adverse with mutual funds and the benefits it offers to investors. But, are you acquainted with SIPs? According to the Association of Mutual Fund in India (AMFI), the mutual fund industry has added around 9.6 Lakhs SIP accounts every month during the FY 2019-2020. So what makes SIPs so special? Why should you invest in mutual funds online via SIPs? Before getting to that, let’s understand what an SIP is.
Systematic Investment Plan or widely known as SIP is a mere tool to invest in mutual funds. Under the SIP scheme, an individual invests a fixed amount periodically in his desired mutual funds at fixed intervals which are pre-determined by the investor. The amount can be as low as Rs500 each month and the frequency can be daily, weekly, monthly, quarterly, bi-annually, or annually.