SIP - Systematic investment Plan

• SIP means Systematic investment Plan.
• It is one of the ways to invest in Mutual Funds.
• Through SIP you can invest in Mutual Funds in small installments on a monthly basis.
• The investment is done directly by debiting your bank account on a specified date and Providing you a credit for the units purchased from the amount.
• You can start your SIP by filling up a simple SIP form and providing bank auto debit Mandate.

Things you should know about SIP Investing in Mutual Funds

• Your SIP does not stop if you miss an installment.
• The AMC does not charge you any money for missing an installment.
• Your bank however, may charge you as per banks policies.
• All SIPs are done in Open ended funds.
• There is no lock in for your SIPs (except tax saving funds).
• You can withdraw any amount at any point of time without stopping your SIP.

Do's and Don'ts for your Mutual Fund SIP Investing

Do's :

• Ensure Sufficient balance in your account on every date of Auto debit.
• Link your SIP with your financial goals and do it for long term.

Don'ts :

• Don't panic with market fall. Continue your SIP in the bad times.
• In case of a market rise, don't hurry to book your profit.
• Keep your investment tenure in mind.