CASE STUDY

 MR. A is 28 years old

salaried person who is
planning to invest a sum of
2000 per month for 10 years
in mutual fund.
 We have to suggest him the
best way to invest in mutual
fund.
What is systematic investment
plan in mutual fund.
 Systematic investment plan in
mutual fund is commonly named
SIP.(It is really getting popular in
India.)
 A SIP is a method of investing in
mutual funds, by investing a fixed
sum at a regular frequency, to buy
units of mutual fund scheme.(It
quite similar to RD of bank.)
 Systematic investment plan (SIP)
is a financial tool that helps you to
create wealth, by investing small
sum of money every month ,over
a period of time. A Systematic
investment Plan is a vehicle
offered by mutual fund to help
investors invest regularly in a
disciplined manner.
 BENEFITS OF SYSTEMATIC
INVESTMENT PLAN
 DISCIPLINED INVETSING : Its
better to follow a disciplined
approach through SIP, as you are
not timing the markets and also beat
the short-term volatility in them
 PRODUCTIVE SPENDING: An
active SIP ensure that a part of your
income is automatically invested in
productive and appreciating assets.
 POWER OF COMPOUNDING:
Compounding refers to the re-
investment of interest to constantly
grow the investment amount year
after year.
 LOW MINIMUM INVESTMENT:
SIP can be started with as small as
rs.500 per month making it lighter
on the wallet.
 SIP CALCULATOR
 By the Systematic
Investment Plan Calculator,
you can easily calculate the
return valve of the investment
that you have made for
particular period.
 So, here we have explained
with example.