Published: 23rd Sep 2024
By: Value Research
SIPs help you invest in mutual funds at regular intervals. You can start an SIP for as low as Rs 500.
SIPs help you become disciplined with your investments. By investing small amounts at regular intervals, SIPs help you stay invested through the ups and downs of the market, improving your cost averaging.
In SIPs, the money moves from your bank account to a mutual fund. In STPs, the money moves from one mutual fund to another.
Let’s say you have Rs 10 lakh invested in an equity fund. You want this money in the next 6-12 months. In this case, it would be best to gradually start moving your money from the equity fund to the liquid fund. This will not only help you earn decent returns but also ensure that you don’t withdraw all the money in one go.
The reverse of SIPs, SWPs involve debiting small amounts of money from your mutual fund investments at pre-determined intervals and crediting it to your bank account.
To find out when you need to start an SWP, read the full story by clicking the link below.