What is difference between sip and mutual fund?

how sip and mutual funds are related?

1 Like

A mutual fund is a pool of money from numerous investors who wish to save or make money just like you. Investing in a mutual fund can be a lot easier than buying and selling individual stocks and bonds on your own. 

When investing into Mutual funds, you have two options. 

1. Lump sum, when you put a bulk amount at a time. So if you had Rs 1lk with you and invested into a particular mutual fund, it is called lump sum investment. 

2. SIP (systematic investment planning), when instead of putting a bulk amount at a time, you keep investing small amounts at a regular interval. 

Check this article. 


A regular mutual fund gathers funds from multiple customers and invests in one of two shares or bonds that seem to yield maximum returns. The risk here is higher compared to sip investment plan by Kotak Mutual Funds where the risk is reduced by diversified investments. You need to see which seems better to you.

Hey @jigneshshah I am not sure if that information is correct. Practically every mutual fund out there diversifies their investments. Please feel free to correct me if I am wrong.

SIP enables you to contribute methodically i.e week after week, month to month or quarterly dependent on your inclination.

With the assistance of best mutual funds, you are putting resources into shared assets.

At the end of the day, SIP is an instrument by which you can put resources into shared assets.

SIP is a technique for shared reserve investment and not a sort or similar venture instrument.
The other instrument for putting resources into a mutual fund is a one-time investment.
SIP is an exceptionally keen and bother free approach to put resources into shared assets. Tragically, numerous financial specialists, particularly new ones, think Taste is a venture independent from anyone else, while it really is an approach to put resources into shared assets.

A mutual fund is a budgetary instrument, which pools your and other financial specialist’s cash in securities exchange on the off chance that you decide on a value shared reserve.

On the off chance that you choose a debt mutual fund, and the cash is put resources into treasury charges, Government Securities, Corporate Securities and Currency Market instruments. Your cash is put resources into a blend of stocks and securities in the event that you pick a half breed to subsidize.

Along these lines, on the off chance that you don’t wish to put resources into the market specifically or you would prefer not to go out on a limb however need to put resources into the market with generally safe, at that point shared finances offer you extraordinary plans dependent on your requirements and targets.

To put resources into these shared assets, there are two techniques you can browse. First through a single amount and second through SIP.

A one-time investment is solitary extensive investment done by an investor in one go. A debt mutual fund is commonly favored for this sort of situation.

While, a SIP is an alternative of putting a settled aggregate in a shared store conspire all the time, for example, predefined normal interim. It is like ordinary sparing plans like a common store.

It is a tried strategy for limiting danger but getting a charge out of good returns, by the ordinary, occasional venture, over a significant lot of time.

Mutual fund is a financial instrument that pools money from investors and uses it to invest it in various places like the stock market, bonds, government security, etc. Compared to a mutual fund, SIP (Systematic Investment Plan) is an instrument used to invest in mutual fund and is not an investment in itself. SIP allows investors to invest systematically i.e. quarterly, monthly or weekly. It also gives investors an opportunity to invest their money according to their preference which is hassle-free. Mutual fund has become very popular due to good returns and high-interest rates. I have been investing a lump sum amount in reliance mutual fund for a while via a direct plan which has earned me good profit. But I have used SIP when I had started my first job and needed to invest my income without putting in too much money. At that time it really turned out to be helpful and allowed me to invest easily as I had just started working. The advantage of using SIP for mutual fund investment was that I had to shell out a fixed amount every month, permitting me to plan my month accordingly. Also, with monthly SIP investment, the volatility of the stock market didn’t affect me so much.

Systematic Investment Plan (SIP) is a technique through which you can invest in mutual funds weekly, daily, monthly, and quarterly. SIP is a hassle-free approach to put your resources into shared assets. You can invest in mutual funds through a lumpsum amount and SIP. SIP is a great mode of investment if you are looking to invest for a long period of time. You can easily accrue your target corpus by investing your money in mutual funds through SIP.