Systematic Investment Plan (SIP) is a method of disciplined investment in market linked funds offered by fund houses (Mutual Funds), Insurance companies (ULIP) and financial institutions. Best SIP plans offered by these fund management institutions, have given very high returns to disciplined investors even during volatile market scenarios.
SIP Plans to Invest in 2023
There is wide range of systematic investment options available today. Let's take a look at few top-performing funds, which are apt for SIP investment in the year 2023.
- Super Select Equity Fund TATA AIA
- Pure Equity BIRLA SUN LIFE
- Pure Stock Fund BAJAJ ALLIANZ
- Large Cap Equity Fund TATA AIA
- Equity Growth Fund II BAJAJ ALLIANZ
What Is SIP - Systematic Investment Plan?
Systematic Investment Plan is commonly known as a SIP. In India, SIP investment plans allow you to invest a fixed amount periodically in your favourite mutual fund schemes, and regular-premium ULIP Plans to grow your SIP premium through compounding interest.
So here's "What is SIP?" in a nutshell: It is a smart, or rather hassle-free, mode of investing money in the following investment options:
Mutual Funds: Here, you are allowed to contribute a pre-determined sum of money on a weekly, monthly, or quarterly basis.
ULIP Plans: Here, you can avail of all the plan benefits with regular payment of policy premiums in the frequency of Monthly/ Quarterly/ Half-yearly/ Annually.
Important Features of SIP Mutual Funds and SIP ULIP Plans:
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SIP mutual funds are flexible in nature, thus, investors can choose to decrease or increase the amount of investment or stop investing in the plan whenever they want.
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SIP ULIP plans allow investors to benefit from Top-up premium payments in case of availability of additional money with you for investment and gain higher maturity returns.
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SIP Mutual Funds and SIP ULIP plans are pocket-friendly investments to build significant wealth in the long term.
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SIP is the safest and best choice of investment for beginners and for those who are not well versed in the mechanism of the financial market.
How Does SIP (Systematic Investment Plan) Work?
Investing in SIP Mutual Fund and SIP ULIP plan is very simple and hassle-free. When you apply for one or best SIP plans, your money is automatically debited from your bank account on a stipulated interval and invested in mutual funds or the ULIP plan you purchased.
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Based on the NAV (Net Asset Value) of your funds, you are allocated a certain number of units at the end of the day.
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Every time you invest, you choose to invest in the best SIP plan in India, and additional units are added to your account based on the current market rate.
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Investors don't require being an expert in the market timing to invest in the Stock Market.
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Units are purchased at different rates. When the prices are high, the investors buy more units, but when the prices are low, investors buy fewer units.
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