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SIP (Systematic Investment Plan) can help to fulfill your financial goals with small investments made at regular intervals. These intervals can be chosen by you as per your convenience. You can invest systematically in mutual funds, gold funds via the SIP route.
Here are some benefits of investing in SIPs:
 

Persistence pays

Any successful investor will tell you that one of the key aspects of investing is to be persistent and dedicated towards the investment. It is easy to start investing with zest and vigor but maintaining the enthusiasm needs focus. A Systematic investment plan allows you to invest small amounts every month/quarter which is easier to maintain as compared to investing a huge amount annually. If you are not persistent with your investment decisions then a SIP can help you achieve your investment goals with ease.
 

Rupee cost averaging

RCA or Rupee Cost Averaging in arguably one of the best aspect of a SIP. This means that since you are investing a fixed amount every month, you will be able to purchase more stocks/units which the price is lower. This in turn reduces the average cost of purchasing the stock/units over a period of time. If you have a long term investment approach, then RCA helps you to gain maximum benefits on your investments over time.

Example: John invests Rs. 1000 in a mutual fund every month. Let’s look at both the scenarios to see what would be the average price of a unit when the prices are rising and when the prices are falling.