Of course, when the prices rise, the same amount will purchase fewer units. This ensures that when the market falls, you get to purchase more units with the same amount of investment. SIPs provide the benefit of Rupee Cost Averaging: When you invest a fixed amount of money every month in mutual funds through SIP, you keep investing irrespective of the market situation.There are no lock-in periods for the SIP route of investing.Įxpert tip: Only Tax Saving Mutual Funds have a lock-in period of 3 years and not other MFs. Moreover, you can skip an installment & cancel or modify your SIP whenever you want. SIPs have total flexibility: SIPs provide complete flexibility on investment amount, choice of monthly and quarterly investing & tenure of investment.So, there is no need to worry about the market's ups and downs. Investment takes place irrespective of the market situation and money is invested in regular installments and at different pricing which helps in lowering cost. No need to time the market: Since this is a regular automatic monthly investment, there is no need of timing the market.
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This eliminates manual intervention required for investment. Automated investment brings discipline: Once SIP is set up, the amount is automatically deducted from your bank account and invested in a mutual fund of your choice.It also spreads the risk over time rather than investing in a lump sum.
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