Please explain SIPs of Mutual Funds.?

Question

I want to invest in MFs. I am told that SIP is on way of investing in MFs. Kindly explain SIPs. The merits/demerits/min. investment etc.

Answer 1

SIP - Systematic Investment Plan

A Systematic Investment lan iss a disciplined approach of investing in MF schemes, where one can make regular investments according to pre-opted schedules.

One can opt for monthly of quarterly intervals. Each transaction will fetch you additional units which are added to your account. Payments can be made by PDC or ECS. By investing a uniform amount regularly one can average out the cost of acquisition of units- it is called Rupee Cost Averaging. Here, one does not have to time the market.



Conclusion : You purchase more units when the market is down and vice versa.



have a nice day !!!

Answer 2

SIP means systamtic investment plan, whereby every month or quarterly a fixed amount wil b deducted from your a/c and wil b invested in those funds u have bought., the advantage is that if the market has falen on that particular day were u r amount comes in for deduction that day u wil get more units for same amount and if the market is risens its vice a versa, the advatnage is rupee average cost and its best method to invest bcz of market volatile

Answer 3

Yes, SIP is a way to invest in MF, more suited to anyone earning a regular income. You can plan for your future earnings and set that money to work as soon as it come to you.

It is similar to a Recurring deposit, here your money gets Units and you can take advantage of rupee cost averaging, do not have to worry about market volatility, you learn to save regularly.

Remember you can plan your retirement, kids education whatever, but the secret lie in the period of SIP, the longer the better.

I believe all young people should save at least 10% of their earning through SIP for as long as possible and retirement should be the first target you should plan achieve by this method of saving...

Answer 4

The SIP is called as systematic investment plan i.e.a certain amount as opted by you is invested to a particular fund which

you have selected for investment in a regular interval say one

month or three months interval. This is the best way to achieve your goals in life like HOME, VEHICLE, MARRIAGE,

FOREIGN TRAVEL etc because you can create wealth if you

invest by way of SIP.You get more units in averaging the units

purchased during the whole period of investment.

Answer 5

Hi, SIP stands for systematic investment plan. Instead of investing in lumpsum, investors invest small amounts at regular intervals say monthly or quarterly. It is one of the best forms of investment if invested for 5 years or more. When the market is down u get more number of units and when the market is high u get less number of units. For more details on mutual funds visit http://www.investorcamp.blogspot.com

Answer 6

he Session Initiation Protocol (SIP) is an Internet Engineering Task Force (IETF) standard protocol for initiating an interactive user session that involves multimedia elements such as video, voice, chat, gaming, and virtual reality.



Like HTTP or SMTP, SIP works in the Application layer of the Open Systems Interconnection (OSI) communications model. The Application layer is the level responsible for ensuring that communication is possible. SIP can establish multimedia sessions or Internet telephony calls, and modify, or terminate them. The protocol can also invite participants to unicast or multicast sessions that do not necessarily involve the initiator. Because the SIP supports name mapping and redirection services, it makes it possible for users to initiate and receive communications and services from any location, and for networks to identify the users whereever they are.



SIP is a request-response protocol, dealing with requests from clients and responses from servers. Participants are identified by SIP URLs. Requests can be sent through any transport protocol, such as UDP, SCTP, or TCP. SIP determines the end system to be used for the session, the communication media and media parameters, and the called party's desire to engage in the communication. Once these are assured, SIP establishes call parameters at either end of the communication, and handles call transfer and termination.