What Are the Alternatives to SIP Schemes?

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:

• 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.