BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Seller Investment Plan
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Systematic Investment Plan
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System Involvement Plan
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None of the Above
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Detailed explanation-1: -Systematic Investment Plan (SIP) allows you to invest a fixed amount at regular intervals in a scheme.
Detailed explanation-2: -The full form of SIP in mutual funds is Systematic Investment Plan. It is not an asset class or an investment instrument. It is, in reality, one of the methods of investing in mutual funds. Therefore, SIP refers to investment in mutual funds regularly with a fixed amount of money in a disciplined manner.
Detailed explanation-3: -SIP (Systematic Investment Plan) is a form of investment mode followed by mutual funds to attract investors to invest small amounts in intervals/periodically instead of lump sums. This process takes place usually weekly, monthly and quarterly. For Example, you can invest with a minimum amount of Rs.
Detailed explanation-4: -Let us assume that you have a monthly SIP of Rs 10, 000 in mutual fund scheme. If you opt for Rs 1, 000 SIP top-up on an annual basis, your monthly SIP instalments will be Rs 11, 000 after one year and Rs 12, 000 in the following year.
Detailed explanation-5: -SIP Investment and Cash Flow For salaried individuals, a monthly SIP should be the most convenient option as they get their salaries on a monthly basis and can make the investments regularly.