A SIP is a flexible and easy investment plan. Your money is auto-debited from your bank account and invested into a specific mutual fund scheme.You are allocated certain number of units based on the ongoing market rate (called NAV or net asset value) for the day.
To start a systematic investment plan (SIP), you must first complete the KYC formalities. Online registration for a SIP is easy and convenient. Before choosing a mutual fund scheme, decide how much you wish to invest via SIPs.
Only investments in Equity Linked Savings Schemes (
Only investments in Equity Linked Savings Schemes (ELSSs) or tax saving mutual fund schemes qualify for a tax deduction under Section 80C of the Income Tax Act. Unfortunately, none of your Systematic Investment Plans (SIPs) are in ELSSs.