Systematic investment plan (SIP): Disciplined method of long term wealth creation 

<p>We have our meals at least twice a day. We expect our kids to study every day. We are always told to exercise regularly. Though we are paid once in a month, we have to work five or six days a week. You cannot have a &lsquo;six-pack&rsquo; body by working out once in a while. Most students cannot secure good marks in the exam by studying once in a blue moon. Being regular is the way to success. If it is true, then why it should not be the case with investing?<br />
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Welcome to the concept of <a href="https://www.utimf.com/invest-in-sip/">systematic investment plan</a>. Put simply, you sign for a series of investments at a pre-defined frequency in a mutual fund scheme. It helps you save at regular interval as per your convenience and build a large corpus over a period of time. Since most of us earn monthly income, the more popular form of SIP comes in the form of monthly investments in mutual fund schemes wherein investors allow <a href="https://www.utimf.com/">mutual funds</a> to collect prescribed sum on a particular date from the saving bank account and invest in mutual fund scheme. You can have a daily, weekly, monthly or quarterly SIP, depending on your cash flows. Before we jump into the benefits of SIP, let us see how it works.</p>

<p>Here is a typical case*. You have chosen to invest Rs 10,000 per month. The NAV or net asset value (fair price) of the unit keeps fluctuating as the market fluctuates. Thus during the year, you would have invested at both lower and higher points, allowing you to average your per unit investment cost. Assume that over a period of 12 months, the NAV has increased by 10%. However, your overall investment cost would have been Rs 9.84 per unit due to cost averaging. This has ensured that you enjoy better absolute return of investment of Rs 12.37%. Put it straight, you could take more money home.<br />
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*<em>For illustration purpose only</em>.</p>

<p><img alt="" height="1" src="https://doc.utimf.com/v1/AUTH_5b9dd00b-8132-4a21-a800-711111810cee/UTIC…; style="width: 1px !important; height: 1px !important; opacity: 0;" width="1" /></p>