{"id":4709,"date":"2023-01-17T07:35:46","date_gmt":"2023-01-17T02:05:46","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=4709"},"modified":"2025-03-27T01:57:56","modified_gmt":"2025-03-26T20:27:56","slug":"what-is-a-mutual-fund-systematic-investment-plan-sip","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/what-is-a-mutual-fund-systematic-investment-plan-sip\/","title":{"rendered":"What is a Mutual fund Systematic Investment Plan (SIP)?"},"content":{"rendered":"<h2><strong>Why in News?<\/strong><\/h2>\n<ul>\n<li>Contributions to mutual fund schemes through systematic investment plans, or SIPs, remain unfazed from the market volatility in 2022 with inflow growing to \u20b91.5 lakh crore in 2022, a surge of 31% from a year earlier, due to higher retail participation.<\/li>\n<\/ul>\n<h3><strong>What is a Systematic Investment Plan (SIP)?<\/strong><\/h3>\n<ul>\n<li>SIP is an investment methodology offered by mutual funds wherein an <strong>individual saver can invest a fixed amount in a chosen scheme periodically at fixed intervals <\/strong>&#8211; say once a month, instead of making a lump sum investment.\u00a0<\/li>\n<li>The SIP installment amount can be as small as \u20b9500 per month and<strong> is similar to a recurring deposit.<\/strong><\/li>\n<li>SIPs help to achieve financial goals by investing small sums of money on a monthly basis that eventually leads to accumulating the required corpus for reaching the goal.<\/li>\n<\/ul>\n<h3><strong>Benefits of SIP:<\/strong><\/h3>\n<ul>\n<li>SIPs bring in an <strong>investment discipline<\/strong> for the investor.<\/li>\n<li>SIPs are done in open-ended funds where the <strong>investors can invest and take out the money anytime.<\/strong><\/li>\n<li>There is<strong> no fixed tenor for running SIP<\/strong>. Once the SIP tenor is fixed, it can BE stopped in between or could be continued even after the tenor by placing the request with the respective mutual fund company.<\/li>\n<li><strong>Full and partial withdrawal is possible<\/strong> during or after the SIP tenor.<\/li>\n<li>The <strong>SIP amount can be increased or decreased.<\/strong><\/li>\n<\/ul>\n<h3><strong>What is a Mutual Fund:<\/strong><\/h3>\n<ul>\n<li>A mutual fund is a <strong>pool of money managed by a professional Fund Manager.<\/strong><\/li>\n<li>It is a <strong>trust that collects money from a number of investors<\/strong> who share a common investment objective and <strong>invests the same in equities, bonds, money market instruments and\/or other securities.<\/strong><\/li>\n<li>The <strong>income \/ gains generated from this collective investment is distributed proportionately <\/strong>amongst the investors after deducting applicable expenses and levies.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1)\u00a0What is a Mutual Fund?<\/h3>\n<p>It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and\/or other securities.<\/p>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/www.thehindu.com\/business\/mfs-sip-collection-jumps-31-to-15-lakh-cr-in-2022-on-higher-retail-participation\/article66383512.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>MFs\u2019 SIP collection jumps 31% to \u20b91.5 lakh cr. in 2022 on higher retail participation<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SIP is an investment methodology to invest a fixed amount periodically at fixed intervals.<\/p>\n","protected":false},"author":5,"featured_media":4710,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-4709","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/4709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=4709"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/4709\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/4710"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=4709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=4709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=4709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}