Business
Systematic Investment Plans (SIPs) have become a popular way for individuals to enter world of mutual funds. India is home to one of the biggest mutual fund investor populations.
It allows you to invest amount at regular intervals in mutual fund of your choice. This method leverages power of compounding, rupee cost averaging, making it an attractive option.
Understanding your goals will help you choose the right mutual fund schemes that align with your investment horizon and risk tolerance.
Different mutual fund schemes come with varying levels of risk. Equity mutual funds, which invest in stocks, are inherently riskier but offer higher potential returns.
Examine the fund's performance over different time frames—1 year, 3 years, 5 years, and since inception.
Investing in mutual funds via SIPs involves certain costs, which can impact your overall returns. The primary costs to consider are the expense ratio and exit load.