One of the easiest ways to invest in the stock market is to use a systematic investment plan. It allows you to make consistent investments month after month, which instills financial discipline in you. Furthermore, it uses rupee cost averaging to help you lower the investment costs, which in turn increases your long-term returns.

Even with the many benefits that SIP offers, there are still quite a few investors who remain away from it despite its many benefits. This is partly due to the multitude of myths surrounding it. We will debunk a few of the most common myths about SIPs in this article. So let’s get started.

This is one of the most common myths surrounding a Systematic Investment Plan. However, contrary to popular belief, a SIP isn’t a product that you invest in. Instead, it’s an investment strategy, in which you’re supposed to make regular investments in a fund of your choice.

It is also a popular myth that investors can only invest in equity funds via an SIP. Investing in the equity market via a Systematic Investment Plan is not the only way to invest in the equity market, although it is the majority of investors who do. An SIP can be used to invest in practically any mutual fund, including debt funds, money market funds, balanced funds, and Gilt funds.

The Systematic Investment Plan is among the most flexible investment strategies available. The flexibility and customization of a SIP are not limited to its creation, but they can also be utilized after it is created. A SIP can be modified at any point after it is created, for example, at any time by changing the duration and amount of investment.

The minimum investment limit of a Systematic Investment Plan starts at Rs. 500 per month, but that does not mean it is only suitable for small investors. In most SIPs, there is no maximum investment limit. As a result, Systematic Investment Plans are suitable for everyone and not just for a certain section of investors, since you can invest whatever amount you are able to afford.