1.

SIP is an investment vehicle offered by mutual funds. What is the full form of SIP?1). Savings Investment Plan2). Systematic Investment Plan3). Systematic Investment Programme4). Systematic Insurance Plan

Answer»

A Systematic Investment Plan (SIP) is an investment vehicle OFFERED by mutual funds to investors, allowing them to invest small amounts PERIODICALLY. The frequency of investment is usually weekly, monthly or QUARTERLY. SIP works on the principle of regular investments. It is like a recurring DEPOSIT where you put in a small amount every month. It allows you to invest by MAKING smaller periodic investments in place of a heavy one-time investment i.e. SIP allows you to pay 10 periodic investments of Rs. 500 each in place of a one-time investment of Rs. 5,000.



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