A systematic investment plan (SIP) is a way to invest a set amount at regular intervals in a selected mutual fund. It describes a contribution method, not a separate asset class or a promise of returns.
Key points to understand
Regular contributions can help make investing a planned habit. The value of units purchased depends on the fund’s net asset value on the relevant transaction date, and the investment’s value can rise or fall.
Questions to consider
- What is the purpose and time horizon?
- What costs, limitations and risks apply?
- Does the information reflect your current circumstances and goals?