Difference between mutual funds and SIP Mutual funds:

1
Understanding the difference between mutual funds
and SIP Mutual funds

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2
Introduction
You may have heard a lot about systematic
investment plans but may not be aware about the
details about the same. Let us try to understand
a few details about these systematic investment
plans which are normally known as SIP.
3

• It is possible to invest a large amount in
  mutual funds at once. But in the case of SIP
  the investor has to invest a specific amount in
  the mutual funds in a planned manner and at
  regular intervals.

• The investor gets the benefits based on Rupee-
  Cost averaging and the power of compounding. In
  case of regular investors the more units are
  purchased when the market rate is low and vice
  versa.

4
Benefits of SIP

• It makes you more disciplined and you save more
  regularly.
• You have the flexibility to stop investing as and
  when you want.
• You can also reduce or increase the investment
  amount.
• There is not much fuss involved in this type of
  investment.
• All you have to do is give auto-debit
  instruction to the bank.
• It is very easy to monitor these type of
  investments.

5
How you can use SIP investments for wealth
creation

• If you want to create wealth with SIP
  investments and reach your financial goals then
  you must make sure that you start early. You must
  have a long term investment plan if you want to
  get maximum benefits and earn lots of money.
• It helps in diversifying your investments. This
  helps in decreasing the risk and it also helps
  you get maximum benefits.