Multiply India - Information on Financial Planning

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How do mutual fund investments work?

Mutual fund investments work in two ways

Systematic Investment Plan (SIP)
Lumpsum investments

Investments through SIP

Investments through SIP

In this method to invest in a mutual fund, you can choose to invest an amount every month.

It is just like investing in a bank RD,

But the money here is invested in different assets.

Here is an example

Here is an example

So, with mutual fund SIPs, you can invest in a small and regular manner.
It is the same as ‘sipping’ water. You always ‘sip’ slowly.

Let's know about lumpsum investments in the next section