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Finance 101: What is an SIP? How to invest as a beginner?

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What is SIP?

Systematic Investment Plan (SIP) lets you invest a fixed amount regularly in mutual funds, helping build wealth over time.

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Benefits of SIP

Rupee cost averaging reduces the impact of market fluctuations by buying more units when prices are low and fewer when high.

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How SIPs Work

Invest a fixed amount regularly, and it’s automatically deducted and invested in your chosen mutual fund.
 

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Choosing a Mutual Fund

Pick a fund that aligns with your goals, risk tolerance, and investment horizon (equity, debt, hybrid).

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How to Start

Open a mutual fund account, complete KYC, and set up SIP through an AMC or online platform.

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Setting Up SIP

Choose a fund, decide the investment amount and frequency, and link your bank account for automatic transfers.
 

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Monitor and Adjust

Regularly check your SIP’s performance and adjust the investment amount or fund choice as needed.

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