1. What is SIP?
SIP (Systematic Investment Plan) is a method of investing where you invest a fixed amount every month in a mutual fund. It makes investing simple, disciplined, and convenient.
2. What is the minimum amount required to start an SIP?
You can start an SIP with as little as ₹500 per month. Some mutual funds even allow you to begin with a smaller amount.
3. Can SIP lead to losses?
Yes, there may be short-term losses due to market fluctuations, but in the long run, SIP generally provides good average returns.
4. What is the difference between SIP and Lump Sum?
In SIP, you invest a small amount every month, whereas in Lump Sum, you invest a large amount all at once. SIP helps balance market fluctuations over time.
5. For how long should you invest in SIP?
It is recommended to invest for at least 3 to 5 years or more to get the full benefits of compounding.
6. What are the benefits of SIP?
- Build a large corpus through small investments
- Balance market risks
- Develop a disciplined investment habit
- Create long-term wealth
7. Can I stop my SIP anytime?
Yes, you can stop or pause your SIP anytime, and there is no penalty for doing so.
9. Does SIP help in saving tax?
Yes, if you invest in an ELSS (Equity Linked Savings Scheme) through SIP, you can get tax benefits under Section 80C of the Income Tax Act.
10. How does FutureInvestHub.com help?
We provide simple, accurate, and useful information related to SIP and Mutual Funds so that you can make the right investment decisions and achieve your financial goals.
