| Invested Amount | Estimated Return | Total Amount |
|---|---|---|
| ₹ 50,000 | ₹ -50,000 | ₹ 0 |
Lumpsum Systematic Investment Plan (SIP) is a method of investing a fixed amount in a mutual fund scheme at regular intervals (monthly, quarterly, etc.) rather than making a lump sum investment. SIP helps to average out the cost of investment by investing the same amount at regular intervals, regardless of market conditions. This way, an investor can purchase more units when the market is low and fewer units when the market is high, thus potentially reducing the average cost per unit over time. SIP is a convenient and hassle-free method of investing, and it also helps to inculcate the habit of regular savings and long-term wealth creation. Additionally, SIP also offers the advantage of INR - ₹ cost averaging and the power of compounding. SIP is best suited for long-term investments and is popular among individual investors as it offers a disciplined approach to investing, helps manage market volatility, and offers the potential for wealth creation over the long term.
A SIP is a method of investing a fixed amount in mutual funds at regular intervals instead of lump sum.
A SIP works by allowing an investor to invest a fixed amount at regular intervals (e.g. weekly, monthly) in a mutual fund scheme. The amount invested each time is used to purchase units of the fund at the prevailing NAV (Net Asset Value).
Some of the benefits of SIP include ₹ cost averaging, disciplined investing, and convenience.
Yes, most mutual fund houses have a low minimum SIP amount, as low as ₹ 500 or ₹ 1,000 in some cases.
Yes, you can stop a SIP anytime by giving a written request to the mutual fund house.
Yes, SIP returns are taxed as per the investor's tax slab. Short-term capital gains (less than 1 year) are taxed at the investor's marginal tax rate while long-term capital gains (more than 1 year) are taxed at 20% with indexation benefits.
The return on SIP is calculated based on the difference between the purchase price (NAV) and the redemption price (NAV) of the units over a period of time.