It might be a very silly question, but is SIP supported in dividend scheme. I tried to do SIP for MOSL focused 35 fund but it says SIP not supported.Asked
In SIP, you invest a fixed amount of money in a mutual fund of your choice every month. The set up is such that the money is automatically debited from your bank account.
The purpose of a dividend scheme is to earn income in regular intervals through the investment in the form of dividends.
Technically, an investor is allowed to go for an SIP in a dividend scheme. However, doing so essentially defeats the purpose of an SIP, wherein an investor is looking to invest surplus funds periodically.
This forms a cycle, wherein the core purpose of both the options is not fulfilled.
Yes, Its possible to do a SIP in dividend schemes but its not the best way to invest.
The purpose of dividend schemes is to earn income from your investments where as SIP is a way of investing monthly from your regular income. So it doesn't make sense to do SIP in dividend schemes.
Check more about dividend schemes: https://groww.in/blog/growth-fund-vs-dividend-fund/
So, SIP in dividend funds is deactivated on groww.
Hope this helps.