Systematic investment plan


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Systematic investment plan

An approach involving regular investments in order to take advantage of dollar-cost averaging.

Dollar-Cost Averaging

An investment strategy in which one makes investments in the same dollar amount at regular times. For example, one may buy $1,000 in Stock A every month, regardless of Stock A's current price. Because this means one buys fewer shares when the price is high and more when the price is low, dollar-cost averaging aims to reduce the average cost of the shares one buys. This increases the profit per share when one sells the stock. Dollar cost averaging is most common with shares of a mutual fund or a retirement plan. It is also called a constant dollar plan.
References in periodicals archive ?
Key features of Prospero's Systematic Investment Plan (SIP) module include:
If you have adequate monthly cash flow after making the maximum contribution, consider a systematic investment plan.
Starting a Systematic Investment Plan (SIP) of just Rs 2,000 may be a good start.
There are two options offered under this scheme-Growth and Dividend Option-and a special facility of Systematic Investment Plan (SIP).
Look at longevity of asset classes and create a portfolio which is meant to be invested for the long term 7 SIPS TAKE AWAY THE HUMAN BIAS: A systematic investment plan ( SIP) is something experts harp on.
Investors should look for a systematic investment plan, than putting a lump sum in stocks.
If you had invested in an ELSS through a systematic investment plan, or SIP, some SIP payments may be older than three years.
Anil Rego, chief executive of Right Horizons, a financial advisory firm, recommends using a Systematic Investment Plan (SIP) to invest in diversified funds, including large and mid-cap funds, as well as balanced funds to help manage the downside.
Systematic Investment Plan Facility (post NFO reopening)
The first step to protect yourself from inflation is to enroll in a Systematic Investment Plan (SIP) n this is a vehicle offered by mutual funds to help investors save regularly for accumulation of wealth in a disciplined manner over the long-term.
In such a situation, systematic investment plan (SIP) comes as the best possible option because it helps you earn higher returns on your principal money.
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