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Mutual funds
Also called: SIP, Systematic investment plan
A SIP (systematic investment plan) invests a fixed rupee amount in a mutual fund at a regular interval, usually monthly. Each instalment buys units at that day's NAV, so more units are bought when the NAV is lower.
A ₹5,000 monthly SIP buys 250 units when the NAV is ₹20 and 200 units when it is ₹25 — 450 units for ₹10,000, an average cost of about ₹22.22 a unit.
A SIP (systematic investment plan) invests a fixed rupee amount in a mutual fund at a regular interval, usually monthly. Each instalment buys units at that day's NAV, so more units are bought when the NAV is lower.
A ₹5,000 monthly SIP buys 250 units when the NAV is ₹20 and 200 units when it is ₹25 — 450 units for ₹10,000, an average cost of about ₹22.22 a unit.
No. SIP describes a fund's costs, structure or past record. Mutual fund investments are subject to market risks, and past performance does not indicate future returns.