Let's admit, Mutual Funds today are as mainstream as they have ever been. You've been hearing about them on your radio, TV, newspaper and various places on the internet (including this blog). There's a good likelihood, every time you've heard the mention of a Mutual Fund, it's followed by a powerful three lettered abbreviation, SIP.
S - Systematic; I - Investment; P - Plan.
All Fund houses, distributor and media talk so much of SIP that for the end investor Mutual Fund and SIP are pretty much synonymous. In fact, many of our investors think they invest in SIPs, not Mutual Funds. We thought we'd lay out a handy guide of what SIPs are, what they aren't and why everyone talks so much about them
What SIPs are:
SIP is basically a mandate, given to the fund house, to periodically invest in a scheme of your choice by deducting money directly from your bank account. It's only a mode of transaction. You very well might invest a...