Investing in mutual funds through a Systematic Investment Plan (SIP) is one of the most effective ways to build wealth over time. SIPs offer the advantage of rupee cost averaging and disciplined investing, making them a preferred choice for both new and seasoned investors. However, not all SIPs are the same. There are various types of SIPs catering to different investment goals and risk appetites. Let’s explore the different types of SIPs you can consider for your investment journey. 1. Regular SIP A Regular SIP is the most common type where an investor contributes a fixed amount at predetermined intervals (weekly, monthly, or quarterly) into a mutual fund scheme. This ensures consistency and helps average out market fluctuations over time. 2. Flexible SIP As the name suggests, a Flexible SIP allows investors to modify the investment amount based on their financial situation. If you have surplus income, you can increase the SIP amount, and during financial constraints, you can redu...
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