SIP, STP, SWP: All you need to know

SIP, STP, SWP...it seems the world of finance is conspiring against you and making your mutual fund journey complicated. Don't worry though, give this article a quick read and you'd realise that not only are they very simple to understand, they actually improve your investing strategy. So, let's not waste any more time and dive straight in. 1. Systematic Investment Plan (SIP) SIP allows you to invest a fixed amount of money in a mutual fund at regular intervals. Let's say you want to invest a certain amount in an equity mutual fund every month, SIP helps you do that. In fact, you can start your SIPs for as low as Rs 500. You may think, "How can small amounts of money help me build wealth?" SIPs can do that due to the power of compounding. It brings together the powerful forces of money and time to help you grow your wealth in the long run. But that's not to say you can't invest large amounts. It all depends on your income and financial goals. Also, most people, despite knowing the importance of equity investing fo

This article was originally published on June 21, 2022, and last updated on October 13, 2022.