The Systematic Investment Plan (SIP) is a strategy that invests a fixed amount at predetermined intervals rather than a larger lump sum all at once. In this method, the cost of your investment is averaged over time rather than trying to time the highs and lows of the market.
The fundamental idea behind SIPs is that investors automatically buy more units as the markets decline. Conversely, when the market is strong, they buy fewer units. This means that you buy less when the price is high whereas you buy more when the price is low. Consequently, the average cost per unit drops down over time.
At Kotak Mutual Fund, the goal is to make customers’ entire investing experience profitable. Whether you are just starting out in life or are a seasoned professional, consistent financial planning and investing will help you increase your wealth.
With a Systematic Investment Plan (SIP), you can start with smaller, more manageable investments at regular intervals instead of having to deal with the burden of lump-sum investments. Based on your financial situation, decide on the amount and time duration.
How does a SIP work?
SIP is a smarter method to realise your aspirations and helps automate your savings. For instance, If you invest ₹25,000 every month for 15 years at a 12 % rate of return, you may accumulate ₹1,18,98,285
Mutual fund investment is subject to market risks. Invest after due diligence and after expert advice.
