 |
| Man walks to invest every month with discipline |
SIP is not any particular mutual fund scheme. It is only a
disciplined investment process. SIP stands for systematic investment
plan. Of course it is easy to subscribe to a mutual fund scheme offered as SIP but it need not necessarily be that way. If you subscribe to a recurring
deposit with a bank with monthly deposits, that too qualifies to be called a SIP!
As far as the alternatives are concerned, they are as follows:
- Every month purchase exchange traded funds - there are many types including funds that track popular indices like NIFTY - such investments are simple and do not require any special knowledge.
- Learn value investing and start investing in excellent stocks yourself. To invest yourself read the book “ The Intelligent Investor” by Benjamin Graham.
Suggested Further Reading:
- Exchange Traded Fund Definition
- What is an Exchange Traded Fund?
- What are the First Steps to Invest in the Indian Stock Market?
- Index Funds of Top 10 Mutual Funds
In conclusion, SIP is a disciplined investing at periodic intervals, usually every month. Investments can be in any financial securities or instruments or schemes including mutual funds offered as SIPs.
No comments:
Post a Comment