What is Systematic Investment Plan (SIP) and Its Benefits

SIP or Systematic Investment plan is a smart method of investing. This method of investingbuilds greater wealth through the small contributions.  It has become very popular due to itsobvious benefit and ease. Today, almost all the mutual  fund companies give the option ofinvestment through the systematic investment plan. Even mutual fund companies relaxed someof their criteria for SIP.What Is SIP or Systematic Investment PlanSuppose, this year, you want to invest 1.2 lakh  in the Axis long term equity fund for the taxsaving. You can invest in this fund through these two methods.1. You save Rs 10,000 every month for the investment. You keep your saving in the savingaccount and invest the total 1.2 lakh at the end of the year.2. You start investing from today and invest Rs 10,000/month in axis long term equity funddirectly.In both of the method, you invest total 1.2 lakh in a year.The first way of investing is called the lump sum investment. While the second method isSystematic Investment Plan.This is a partnered post.