What is SIP?

We all wish to inculcate in ourselves a habit of saving regularly. But what is the next step to implement it?

The next step is to invest the saved money wisely and not let it sit idle. It sounds like a lot of effort. But it has a simple solution- SYSTEMATIC INVESTMENT PLAN(SIP)

SIP lets you save and invest at the same time little by little. It lets you decide on a fixed amount which gets invested periodically in a mutual fund scheme most suitable for you.

SIP can be done for any one of the mutual fund schemes be it equity or debt or even liquid funds.

You can select the amount and start with as low as Rs500. You can select the deduction cycle- whether it is weekly/monthly/quarterly ( the minimum amount may vary for the different period). People mostly opt for  monthly SIPs.

So save that extra Rs 1000 you might splurge on shopping and save some for a future requirement.