Wednesday, December 28, 2016

What Are the Alternatives to SIP Schemes?

Man walks to invest every month with discipline
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:

  1. 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.
  2. 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:

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.

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