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Explainer: A brief explanation about Systematic Investment Plans (SIP)

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Systematic Investment Plans (SIP) are those investment plans that will allow a person to invest a fixed amount in to a mutual fund on a regular basis.

Explainer: A brief explanation about Systematic Investment Plans (SIP)
Systematic Investment Plans (SIP) are those investment plans that will allow a person to invest a fixed amount in to a mutual fund on a regular basis.
Individuals who want to start investing, yet are unable to do a bulk investment, would often opt for SIP plans.
These plans will allow user to invest a small amount on regular basis.
Usually, an individual would spend a fixed amount to buy a number of shares in a fund on a regular basis.
As the amount is stable, the number of shares bought out can vary based on the share value and market condition.
But one big merit of this policy is that it can impart financial discipline in a user by prompting him to set aside a particular amount regularly.
It's also a good plan for those people who wants to set aside a particular amount to fulfil plans such as tours, new vehicle etc. in a given time.
However, one demerit that the plan is that it's inherent rigidity.
As only a fixed amount is invested, it will be hard to capitalise on market fluctuations, particularly gains.
Also SIPs often require long time commitment as the time period of these schemes can be around 15 years.

Market Movers

CompanyPriceChng%Chng
Sun Pharma773.95 70.95 10.09
Tech Mahindra1,209.55 81.75 7.25
Cipla920.05 36.95 4.18
Shree Cements28,265.75 626.80 2.27
Adani Ports674.50 14.85 2.25
CompanyPriceChng%Chng
Sun Pharma774.00 70.75 10.06
Tech Mahindra1,209.45 81.70 7.24
Power Grid Corp171.05 3.65 2.18
Bajaj Auto3,831.05 68.25 1.81
HCL Tech1,025.45 17.85 1.77
CompanyPriceChng%Chng
Hindalco444.80 -13.30 -2.90
Bajaj Finance6,228.10 -172.00 -2.69
SBI Life Insura1,098.60 -30.25 -2.68
Bajaj Finserv14,222.20 -376.85 -2.58
SBI431.80 -9.75 -2.21
CompanyPriceChng%Chng
Bajaj Finance6,228.90 -165.40 -2.59
Bajaj Finserv14,221.30 -369.15 -2.53
SBI431.70 -10.05 -2.28
Tata Steel1,433.75 -25.25 -1.73
Titan Company1,714.50 -25.60 -1.47

Currency

CompanyPriceChng%Chng
Dollar-Rupee74.41000.12500.17
Euro-Rupee88.1640-0.0840-0.10
Pound-Rupee103.3800-0.2730-0.26
Rupee-100 Yen0.6779-0.0005-0.07