What is SIP in mutual fund in 2022?
You must have heard the name of SIP at some point or the other. What is SIP. Why should we invest in SIP? What are the benefits of SIP? All these questions must be running in your mind.
Nowadays SIP is very popular as an investment. Friends, in today’s time we all want to build wealth by investing somewhere. Some invest in gold, some in the stock market or some invest in FD, PPF, etc. One of these popular options is SIP, which has been growing rapidly for the last few years and its potential is visible in the future as well.If you are also interested to know about SIP, then let us understand what is SIP, SIP meaning and what are the benefits of SIP?
What is SIP in Mutual funds
SIP means Systematic Investment Plan. It (SIP meaning) means to invest continuously by you systematically.
In simple language, you keep putting money continuously in the scheme of any one mutual fund, due to which you accumulate a lot of money in maturity. You can understand this with the example of a piggy bank of your house, you keep putting some money in it every day and when you break it in the last, a lot of money comes out of it. But here you do not get any interest on that money but in SIP you get profit on your money.
SIP is a means of investing in mutual funds. In SIP, you continuously deposit some amount in your portfolio at a fixed interval, which builds up your wealth in the long run. Through SIP, you can achieve your goal by investing in any scheme matching your objectives.
Starting a SIP is very easy these days. When you add your SIP Biller to your bank account or enable ECS, your SIP installment automatically gets deducted from your bank account on the due date. For this you have to keep auto debit on.