Are‌ ‌SIPs‌ ‌really‌ ‌the‌ ‌best‌ ‌way‌ ‌to‌ ‌invest‌‌‌ ‌in ‌mutual‌ ‌funds?‌

SIPs are the most sizzling topics in terms of planning and investments. Investments are a vital part of every human’s life. If a person is unable to invest his money in a productive way, all his earnings may go in vain. In today’s’ world, where money is almost everything, a good investment plan is a must. So, before moving on to whether SIPs are the best‌ ‌way‌ ‌to‌ ‌invest‌, let us first discuss, what SIPs are:

So, to start with, SIPs stands for Systematic Investment Plans. These are very simple and a very flexible way of investment of money. Additionally, in the case of a systematic investment plan, you will spend a fixed amount of money. The bank will charge you a fixed amount on a monthly or quarterly basis, depending on your plan. These fixed amounts are for your mutual fund schemes. Then, you will get a number of units of this particular mutual fund, on the basis of the buying price of that fund on that individual date.

There are a lot of advantages of an SIP and some are here below. By reading these advantages of Systematic Investment Plan, you can decide whether it is the best‌ ‌way‌ ‌to‌ ‌invest‌:


The amount of an SIP may start from a very small amount. In fact, the amount can even be as small as Rs.100. This absolutely goes easy on your pocket. This is definitely one of the most suitable things, if someone is planning to invest for the first time.

Investment frequency:

The frequency of investment can be either monthly, quarterly, weekly. This will depend on what you choose for your investment.

Market timing:

One of the most important advantage of SIPs are that they do not need market timing. You will not have to time the market. This is because, in this case you are investing the money in various prices. Thus, it also provides you with the opportunity to start it in all kinds of market conditions. The rupee cost averaging is another major advantage over here. it enables you to lower the cost without the fear of market conditions.

Disciplined investments:

As the name suggests, the SIPs are quite systematic and in nature and are absolutely hassle free. Systematic investment plan is a periodic method of investment. So, it tends to inculcate a disciplined way of investment. Also, it helps to make a portfolio of investment and it is absolutely devoid of hassles.

Rupee cost averaging:

This is probably one if the biggest advantage of Systemtic Investments plans. And, this is rupee cost averaging. SIPs tend to give the investor the benefit of rupee cost averaging. This is because, the entire process of investment takes pace in a periodic manner.

Stop it any time:

You do not have to pay any fine if you want to stop your SIP plan. Simply just opt out of it and you are done.

Leave a Reply