Many people get confused between systematic investment plans (SIP) and mutual funds. While a mutual fund is an investment product, SIP is one of the methods of investing in mutual funds. So, when you invest through SIP, you are actually investing in a Mutual Fund.

1. Mutual Fund vs SIP
Which should you choose?
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2. What are Mutual
Funds?
Imagine a basket filled with diverse
stocks, bonds, and other assets.
That's called as Mutual Fund.
It’s a form of investment in which an
authorized fund house collects money
from investors & trades in securities
on their behalf, intending to maximize
the profit ratio with the lowest risk.

3. Why choose Mutual Funds?
Spread your risk
across various assets,
minimizing exposure
to individual market
fluctuations.
Buy and sell your
units conveniently,
providing access to
your funds when
needed.
Experts handle the
investment selection
and monitoring, saving
you time and effort.
Diversification
of Portfolio
Professional
Management
Liquidity
of Shares

4. What is SIP?
Think of SIPs as your "investing
autopilot." It's a way to regularly
invest a fixed amount in Mutual
Funds, like setting up a recurring
payment.
Instead of investing a lump sum
amount. Investor's contribute smaller
fixed amounts at regular intervals,
usually monthly or quarterly.

5. Benefits of SIPs
Start small, but grow
steadily over time with
reinvested earnings.
Begin with small
amounts, making it
accessible to everyone.
Automate your
investments and avoid
emotional decisions
based on market volatility.
Power of
Compounding
Disciplined
Investing
Affordability

6. Lump Sum vs. Regular Investment
You have a significant
amount of capital ready to
invest.
Choose Lump Sum if: Choose SIPs if:
You're comfortable actively
managing your investment
decisions.
You have a short-term
investment horizon.
You want to start small and
grow steadily over time.
You prefer a hands-off
approach with automated
investments.
You have a long-term
investment goal (retirement,
child's education, etc.).

7. What should you
choose SIPs or Mutual
Fund?
SIPs are beginner-friendly: It is perfect for those
who are starting their investment journey with
limited capital.
Direct Mutual Fund investment might suit
experienced investors. Investors with larger
capital and those who are comfortable
managing their portfolio actively.
Ultimately, the right option depends on your
individual circumstances and goals.

8. Advantages
of SIPs vs.
Direct
Investment
Rupee Cost Averaging
Buy more units when prices are
low, and fewer when they're
high, reducing the impact of
market volatility.
Habit Formation
Develop a disciplined investment
behavior for long-term wealth
creation.
Emotional Discipline
Avoid impulsive decisions
based on market fluctuations.
SIPs offer unique benefits beyond convenience:

9. Myth
SIPs require high minimum
investments.
Mutual Funds are risky and
complex.
Diversification minimizes risk, and
professional management simplifies
the process.
SIPs guarantee returns.
No investment guarantees returns,
but SIPs encourage long-term
growth potential.
Common Myths and
Misconceptions
Fact
You can start with
as little as Rs. 500!

10. Risk tolerance: Comfortable with market
fluctuations?
Financial goals: Short-term or long-term
investment horizon?
Investment knowledge and experience:
Do you prefer hands-on or automated
investing?
Fund Performance: Check 3-5 years
performance of the funds
Factors to consider before you
invest in SIP or Mutual Fund

11. Thank you
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