Sytematic Investment Planning (SIP) . SIP option of investing is available with all the mutual funds. SIP is an ideal way of investing for the retail investor especially for investing in equity funds.
1. A method of investing regularly to benefit from the stock market volatility.(Cost averaging )
2. Regular- Similar to Recurring Deposit.
3. Automatic investments, one-time instruction, auto- debit facility from your SB account (Convenient and Hassle-Free)
4. Forced saving – you can easily fall into the pattern of Earn- > Save -> Consume intead of consume and then save.
Overall, an SIP is a simple device that helps you to save and invest in a disciplined manner without having to time the market.