Systematic Investment Plan
A systematic Investment Plan(S.I.P) is a way to invest regularly in stock market. For Instance you invest Rs 2000 every month for next 2 years irrespective of the stock market movements. If Stock Market moves up then S.I.P plan will keep investing at regular intervals which will help in getting the benefits of it's up move and in the adverse case if Stock Market goes down then S.I.P plan will help you to invest at lower levels providing the benefits in the long term.More importantly you don't need to time the market to make money in the long term.Also you can specify your bank to deduct Rs 2000 every month for next 2-3 years so you don't need to make the transactions manually every month.
The returns of S.I.P for last 20 years is approximately 15% annualized for Indian Stock Market.
For e.g. If you have invested Rs1000 every month for last 20 years then your current account balance is Rs13,00,027 compounded annually which is achieved by investing 1000 * 12 * 20 = Rs240,000.
Advantages of investing through S.I.P is
1.You don't need to time the market.
2. You get the returns comparable to benchmark indices.
3. There is no active participation required in stock market and even then you get all the benefits of it's up move.
Link for S.I.P Calculator.You can click the link below to calculate your wealth using S.I.P calculator.
For ICICI account holders, here is the link below to setup the automated S.I.P .
The above link also specify the benefits of S.I.P
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