Here is a collection of must-see videos that will help you understand the world of mutual funds. Happy Investing!

Financial discipline is similar to going on a diet. It is never easy. There are plenty of temptations - an urge to over spend, letting emotions control your investments and confusion due to the problem of plenty - look at the plethora of options available in the market, with the returns of one scheme trying to beat the other. Who does one turn to for advice? Dependency on one person or your financial advisor alone is also tricky. Which is why people often turn to mutual funds.

The argument here is that experts are taking care of your investments. Depending on your investment appetite and risk appetite, mutual funds come with a good mix of both equity and debt, which helps you earn an interest of 12-15% or more depending on the type of investment schteme you have picked and how the markets have performed overall. Yet, selecting a mutual fund can be confounding due to the raft of choices available.

Episode 6 I Beginner

SIP - Systematic Investment Plan, explained

What is Systematic Investment Plan?

A Systematic Investment Plan or SIP allows you to invest a fixed amount of money regularly in a mutual fund scheme. This is done in order to generate wealth over a long-term to achieve your financial goals. SIP is a mere tool to help you invest regularly and stagger your investments in mutual funds over a period of time.

Why you should set up an SIP?

SIPs impart financial discipline that help you invest regularly without wrestling with the market mood. Investing via SIPs automatically invest money for you, in funds chosen by you, without any more effort on your part.

What are the benefits of an SIP?

An SIP enables you to take part in the stock market without actively timing them. You can benefit from buying more units when the prices falls and less units when the price rises. SIPs invested over the long-term will help your returns compound. This in-turn helps you build a large corpus which will help you achieve your long-term financial goals with regular small investments. You can begin investing in a mutual fund scheme via SIP with a minimum amount of Rs 500. You can customise your SIPs, as mutual funds allow investors to invest monthly, bi-monthly and fortnightly according to your convenience. Moreover, a Step-up SIP allows you to increase the SIP amount periodically so you can decide if you want to buy more when the markets dip. Once your financial goal is met, you can stop the SIP via a written communication to the fund house or AMC.