2007-01-04 02:59:41 · 7 answers · asked by manid 1 in Business & Finance ➔ Investing
SIP..is Systamatic Investment plan ..just like Recurring deposit type ...U can invest the maount in monthly installments for investments into Mutual fund schemes which will take care of risks against market fluctuation in Stocks..on other hand the Mutual fund is fund invested in selected Stocks by the MF company ...take some protection against market fluctuations..it is fast emerging investment as option for making good retuns on yr funds..but pl browse the reputed web sites like Valueresaech.com,MF.com,ICICI web sites...to get more clarity and knoweldge...Pl remember that do not be greedy about money...otherwise it kills U .
2007-01-04 03:08:18 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Systematic Investment Plan:
An SIP is a vehicle offered by mutual funds to help you save regularly.
It is just like a recurring deposit with the post office or bank where you put in a small amount every month. The difference here is that the amount is invested in a mutual fund.
The minimum amount to be invested can be as small as Rs 500 and the frequency of investment is usually monthly or quarterly.
A mutual fund, or an open-end fund, sells as many shares as investor demand requires. As money flows in, the fund grows. If money flows out of the fund the number of the fund’s outstanding shares drops. Open-end funds are sometimes closed to new investors, but existing investors can still continue to invest money in the fund. In order to sell shares an investor usually sells the shares back to the fund. ...
2007-01-05 03:03:36 · answer #2 · answered by Anonymous · 0⤊ 0⤋
SIP is a method of investing in a mutual fund. By SIP, u invest a certani amount every month in a particular mutual fund. This adds more discipline to ur investment rather than thinking abt timing the market. The SIP is the best way to iinvest in the market as it has the AVERAGING effect. When the markets are on rise, SIP gets u lower number of units and when the markets are down, SIP gets u higher number of units, thus making it COST AVERAGE.
2007-01-05 07:10:32 · answer #3 · answered by sriram_psg2002 2 · 0⤊ 0⤋
Hello,
SIP is a scheme run by Mutual Fund. Mutual Funds in India have different instruments for investing which include -
Open ended schemes
Close ended schemes
SIP
Equity Linked
Debt
Sector specific funds
SIP is a systematic investment plan where a fixed sum of money is invested in a MF and is considered good for small investors looking for decent returns.
Thanks
Raghav
2007-01-04 23:04:14 · answer #4 · answered by Raghav 4 · 0⤊ 0⤋
Mutual fund is a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. Mutual funds offer several schemes to any investor.
SIP, Systematic Investment Plan, is a method of investing in a mutual fund. This allows investors to invest with small amounts. For example, a mutual fund scheme would require a minimum of Rs.6000/- as annual investment. This may be done in installments as allowed by the mutual fund company as, 3000x2, 2000x3, 1000x6, 500x12 etc.
2007-01-04 12:12:35 · answer #5 · answered by Adam Love 2 · 0⤊ 0⤋
Mutual fund is pooling all the money of the small investors and investing in different instrument like , bonds, stock market, etc.
SIP is systematic investment plan. It is like investing in a recurring bank account. The money invested every month is used for purchasing the mutual fund units of that particular fund which is invested again in mutual fund. Here the the purchasing is done as per the value of the unit at that time of purchase.
2007-01-04 11:15:25 · answer #6 · answered by suryanarayanan u 3 · 0⤊ 0⤋
SIP is the part of mutual funds. you can invest per month a fixed amont in mutual funds called systamatic investment plan
2007-01-04 20:20:27 · answer #7 · answered by keral 6 · 0⤊ 0⤋