What should be the approach for beginner to invest in SIPs?
SIPs (Systematic Investment Plan) is a facility provided by various mutual fund houses that involves collecting small amount of funds from investors at regular intervals and pooling it together to invest in various monetary assets.
Answer and Explanation:
Before starting to invest in SIPs, you must know the basics and various terms linked to mutual funds. You must know what you're risk appetite is and based on that you must select a mutual fund for your investment. You must do some research on mutual funds and compare them based on their historical returns and then make a decision.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Corporate Finance: Help & ReviewChapter 8 / Lesson 7