SIP-5 Simple way to understand Systematic Investment Plan ( SIP )
1. Power of Compounding:SIP allows investors to take advantage of the power of compounding
2. Rupee Cost Averaging:This averaging effect helps in reducing the overall cost of investment and lowers the impact of market volatility.
3. Flexibility:SIP offers flexibility in terms of investment amount
4. Disciplined Approach :SIP instills discipline in investors as they make regular investments, regardless of market conditions.
5. SIP better than FD?
Fixed Deposits offer a fixed interest rate and guarantee the principal amount at maturity, providing a sense of security. However, the returns are generally lower compared to equity-based investments like SIPs.