SBI MF-OLDSIP (2024)

Systematic Investment Plan (SIP) allows you to invest a fixed amount at regular intervals in a scheme. There are many benefits of investing in a SIP.

• Power of compounding -Investing in SIP allows the investor to take advantage of the power of compounding. Regular investments in a scheme leads to compounding which means you earn interest on your interest as it is added to the original amount. This is very beneficial for long term wealth creation.
• Rupee cost averaging -When an investor invests through SIP, he gets the benefit of rupee cost averaging. It means that the investor gets more units when the Net Asset Value (NAV) of the scheme is low and less units when the NAV is high. This brings down average cost of units over the long term.
• Flexibility -An investor has the flexibility to choose the amount, duration and the interval of the SIP. They also have the option to change the amount, pause or stop the SIP.
• Disciplined investing -Investment via SIP inculcates the value of disciplined investing in an investor as they are committed to investing a specific amount for a fixed period of time which is essential in long term wealth creation.

A Systematic Investment Plan (SIP) is an investment tool which allows the investor to invest a fixed amount at regular intervals in a Mutual Fund scheme.

SIP works by investing a fixed amount at a defined frequency. With this an investor does not need to time the market and can invest in a hassle-free manner.