Systematic Investment Plan (SIP) is a method through which you can invest in assets at periodic intervals. Here are some common myths about SIP.
A large sum of money is not required to invest in an asset class through SIP. One can begin investing with as little as Rs 500.
A demat account is not required to invest in mutual funds through SIP. However, investors must complete the Know Your Client (KYC) process.
Although SIP is a great way to achieve a better cost-price average, it does not guarantee higher returns or protection against volatility.
SIP is a common method for investors to invest in equity. However, one can also use the SIP route to invest in debt funds to diversify the portfolio.
SIP is often confused with an investment product. However, it is not an investment product but a method through which one can invest in various investment products, such as mutual fund schemes.
SIP reduces the need to constantly monitor your investments. Its passive nature helps investors stay invested and ride the waves of volatility with ease by reducing the need to intervene.
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