The systematic methods: SIP, STP, SWP

Systematic investment plan (SIP), systematic transfer plan (STP) and systematic withdrawal plan (SWP) are methods of systematic investing and withdrawal, each serving a different purpose. Systematic investment plan (SIP) An SIP allows you to invest small amounts of money over time to build a corpus. By spreading out investments over a period of time, they help investors average their purchase cost. This prevents you from committing all your money at a market peak, and hence maximises returns. SIPs also bring discipline to investin

This article was originally published on August 12, 2020.