Concept of MF
Mutual Fund (MF) – Small investors come together with smaller investment amount and common objective – handed over to expert (Mutual Fund Co – AMC) – In turn invest with equity – debt market – allots the unit and shares the profit with unit holders.
Systematic Investment Plan (SIP ) – Investors agrees to invest certain agreed amount (i.e. Rs. 2000/- per month) on mutually agreed date of every month with particular scheme of Mutual Fund.
Advantage of SIP
- No Emotion / confusion on time
- Average out to investors advantage
- Free insurance possible*