Have you thought how many SIP’s are available in the market? If you don’t know, then this article is for you. Whenever it comes to investment, you often say to start SIP. SIP, i.e., Systematic Investment Plan, under which you have to invest in a fixed time interval.
Under this, you invest a fixed amount in a mutual fund every month. However, few people know that SIP is also of many types. Let’s know how many types of SIP are there and how it works.
What is SIP?
Systematic Investment Plan, which is called SIP in common language, is becoming the top choice of investment in today’s time. Money is invested in mutual funds through SIP. SIP is considered to be slightly less risky than ininsurance. directly in the market, as well as investors get a lot of flexibility to invest in it. For this reason, this scheme has hit very fast. According to experts, its average return in the long term is up to 12%, which is much better than all the schemes running in today’s time.
SIP Rules
Be disciplined about investments
If you want to create wealth through SIP, then you have to be disciplined in terms of investment. Meaning if you have started investing once, then continue it continuously. SIP has been started for a long time, so do not stop it in the middle nor withdraw money in between. You may start SIP with a small amount, but if you continue it with discipline for a long time, you can earn a lot of profits.
Do not start a SIP of a large amount
If you are starting SIP for a long time, do not start it with a large amount. The reason for this is that many times, due to some special circumstances, people are not able to continue SIP in large amounts. In such a situation, SIP stops in the middle, due to which you are not able to earn very good profits from it.
How many SIP’s are existing?
Regular SIP
Step-up SIP
Flexible SIP
Trigger SIP
SIP with insurance