Basics Of Stock Market - Intermediate

Learn Everything About Equity Systematic Investment Plan (Equity SIP).

What is Equity Systematic Investment Plan?

Equity SIP allows investors to buy certain shares in a regular, systematic way. Learn about equity SIP and its features.

Investors can systematically buy shares through equity SIPs. They receive periodic payments, either weekly, or monthly. This is especially useful for salaried investors who want to build a long-term portfolio of stocks, without having to invest a lump sum.

Equity SIP Features:

SIP is a highly sought-after investment opportunity in the equity market.

  • Based on Rupee Cost Averaging
  • A simple and systematic approach to investing
  • You can start with a little money and invest it at regular intervals
  • Flexibility in quantity, time and amount

Types of equity SIP

Amount-based SIP: This is a type of SIP in which a fixed amount is invested into a select share for a specified time period, as determined by the investor.

Quantity-based SIP:This type of SIP allows for the purchase of a set number of shares over a specified time period.

Equity SIP Benefits

Small investors can consider SIP as an investment option. These benefits include:

  • Volatility can be minimized
  • A simple and systematic approach to investing
  • There are no additional fees or entry/exit charges
  •  Long-term financial goals can be achieved
  • Take advantage of Rupee Cost Averaging's power and compounding

What is the secret to it?

Equity SIP can be used as a flexible investment strategy. The type of SIP (amount/quantity-based) is chosen by the investor. Once the amount has been deducted from your account, it is invested in the share.

Equity SIP helps to avoid the risk of purchasing shares at a higher value. These are best suited for long-term investors. You should consider the company's fundamentals when choosing stock.

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