What is SIP?
A systematic investment plan (SIP) is a plan where investors make regular, equal payments into a mutual fund, trading account, or retirement account. SIPs allow investors to save regularly with a smaller amount of money while benefiting from the long-term advantages of dollar-cost averaging (DCA). By using a DCA strategy, an investor buys an investment using periodic equal transfers of funds to build wealth or a portfolio over time slowly.
- A systematic investment plan involves investing a consistent sum of money regularly, and usually into the same security.
- A SIP generally pulls automatic withdrawals from the funding account and may require extended commitments from the investor.
- SIPs operate on the principle of dollar-cost averaging.
- Most brokerages and mutual fund companies offer SIPs.
- Onyx Trade Give us a opportunity to invest in SIP Plan for a very short time only 105 working days.Company provide us very unique software to manage self investment and customers investment.
What is DCA?
Dollar-cost average is an investment strategy where an individual invests a fixed amount at regular intervals into the same stocks, mutual funds, or ETFs (exchange-traded funds). No matter what the financial markets are doing, the dollar amount never varies.