Now, we discuss a very powerful and very popular way of investing in mutual funds. That is through systematic investment plans, si peas in SI p a fixed amount of money is debited from the investor's bank account and invested in a specific mutual fund. The fixed amount can be a very small amount like rupees 500 or it can be any large amount also. In India the periodicity is generally weekly, monthly or quarterly. The fixed amount is debited on a specified day of the week or a specific date of a month or a quarter as per the instructions given by the investor. The debited amount is invested to buy units in the specified mutual fund as per the nav of the mutual fund on that particular day the strategy of investing through si p claims to three the investor from speculating in the volatile market by dollar cost averaging.

As the investor is getting more units when the price is low and fewer units when the prices high in the long run, the average cost per unit is supposed to be lower. Si P is a very good investment mechanism for small investors. small investors can keep putting in small amounts of money into mutual funds through si P. Wireless harpies invest small amounts of investors money into mutual funds, which can generate lots of great returns for the investor. It also instills a discipline of saving regularly for the investors Si PS are very flexible. Si p can be stopped at any point of time by the investor. The amount of money to be debited at the end of each period in a si p can also be changed.

However, changing the SI p amount that is the amount to be debited at the end of each period is same as stopping one is IP and starting a new as IP