SIP is a method of investing in mutual funds where an individual invests a fixed amount regularly, typically monthly or quarterly.
Rupee Cost Averaging
SIP allows investors to buy more units of a mutual fund when prices are low and fewer units when prices are high, effectively reducing the average cost of investment.
Flexibility
Investors have the flexibility to start, stop, or modify their SIP contributions as per their financial goals and circumstances.
Automatic Deductions
SIP payments are automatically deducted from the investor's bank account, making it convenient and hassle-free.
Long-Term Wealth Creation
SIP is ideal for long-term wealth creation as it harnesses the power of compounding over time.
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Tax Benefits
Some SIPs, such as Equity-Linked Savings Schemes (ELSS), offer tax benefits under Section 80C of the Income Tax Act in India, making them a popular choice for tax planning.