Difference between SIP and Mutual Fund

Difference Between SIP and Mutual Fund

SIP in mutual funds enables regular, small investments, harnessing compounding’s power and mitigating market volatility, making it a favored tool for long-term wealth creation.

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Mutual funds pool investors' funds for diversified investment in stocks and bonds, aiming to balance risk and returns.

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SIP is disciplined, periodic investing in funds, while mutual funds allow lump-sum, diversified investments.

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SIP enables gradual wealth growth over time, while mutual funds offer wealth accumulation through various investment modes, such as SIP or lump sum, depending on investor choice.

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SIP involves fixed, regular investments chosen by the investor, while lump sum in mutual funds means investing a large amount at once.

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SIPs reduce investment risk via Rupee Cost Averaging, buying more units when markets are low. Mutual funds investing in diversified assets are still subject to market volatility.

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SIP and mutual fund fees depend on the chosen plan and provider, including entry/exit fees, expense ratios, and management expenses, which accumulate over time.

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SIPs and mutual funds ensure easy withdrawals with fast bank transfers, typically processed in two days for high liquidity.

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Dive deep into our comprehensive blog to unravel the key differences between SIPs and Mutual Funds. Click to read now!

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