What is a Systematic Investment Plan

 

An SIP, or Systematic Investment Plan, is an investment method by which mutual funds allow their investors to invest in a disciplined / systematic manner. By using the SIP facility, an investor can invest a fixed amount of money at predetermined intervals in a mutual fund scheme. The instalment amount can be as low as Rs.100, while the pre-defined SIP intervals can be daily, weekly, monthly, or yearly. Investing in SIP can be a time-bound manner and may provide an opportunity for investors to build their investment over the long term due to the power of compounding and average costing.

A Postal Deposit is a savings scheme offered by India Post that allows individuals to deposit money in a secure and systematic manner. By using this facility, an investor can deposit a fixed amount of money at predetermined intervals in different post office savings schemes. The deposit amount can be as low as Rs.100, while the intervals can be monthly, quarterly, half-yearly, or yearly, depending on the scheme chosen. Investing in a Postal Deposit in a disciplined manner may provide an opportunity for individuals to build their savings over the long term, while also earning interest and enjoying the safety of government-backed schemes.