Systematic Investment Planning (SIP)

The platform has seen large acceptance by brokers for facilitating their investors and BSE is today the leader in the segment with over 70% market share. In keeping with the exchange's tradition of excellence and continuous enhancement, the investor popular facility of SIP was introduced w.e.f. Friday, December 10, 2010. Some information about the SIP facility is given below: SIP stands for Systematic Investment Plan - Just as drops of water make an ocean, small but regular investments can go a long way in building wealth over time. This way an investor can make his investment grow step by step. It is considered always prudent to invest in small installments but with a long term horizon in mind. Systematic Investment Plan (SIP) helps you achieve just that. It is an investment technique where you deposit as little as say, Rs. 500 regularly every month into a selected mutual fund scheme at the then prevailing NAV (Net Asset Value). SIP is fast gaining currency amongst the investor community as an investment vehicle because of its various advantages such as :

  • Small investment size per installment. An investor need not wait for or block up a large amount of funds at one time and instead can choose to invest small amounts that are more easily available. The SIP amount is very small and can be chosen by the investor from the various schemes made available by AMCs on STAR MF platform
  • Habit of continuous savings and investment - SIP creates a habit of saving in a way as the investor is prompted regularly that he has to invest a small sum of money
  • Lower average cost per unit - since the investments are spread over a period of time, buying fewer units during rising markets and buying more units during falling markets reduces the average cost per unit of one's investments - this concept is known as Rupee Cost Averaging.

The investors would now be able to use this popular tool to invest in SIP through their broker (MFI) and enjoy the conveniences afforded by BSE's exchange platform for Mutual Funds. The brokers (MFIs) can register SIP for their clients on the STAR MF platform in either the physical mode or through the demat (dematerialised) mode. The detailed operating instructions as well as the process guidelines for transacting in SIP for those schemes that are allowed on the STAR MF platform can be viewed on the following URL: The platform has seen large acceptance by brokers for facilitating their investors and BSE is today the leader in the segment with over 70% market share. In keeping with the exchange's tradition of excellence and continuous enhancement, the investor popular facility of SIP was introduced w.e.f. Friday, December 10, 2010. Some information about the SIP facility is given below: SIP stands for Systematic Investment Plan - Just as drops of water make an ocean, small but regular investments can go a long way in building wealth over time. This way an investor can make his investment grow step by step. It is considered always prudent to invest in small installments but with a long term horizon in mind. Systematic Investment Plan (SIP) helps you achieve just that. It is an investment technique where you deposit as little as say, Rs. 500 regularly every month into a selected mutual fund scheme at the then prevailing NAV (Net Asset Value). SIP is fast gaining currency amongst the investor community as an investment vehicle because of its various advantages such as :

  • Small investment size per installment. An investor need not wait for or block up a large amount of funds at one time and instead can choose to invest small amounts that are more easily available. The SIP amount is very small and can be chosen by the investor from the various schemes made available by AMCs on STAR MF platform
  • Habit of continuous savings and investment - SIP creates a habit of saving in a way as the investor is prompted regularly that he has to invest a small sum of money
  • Lower average cost per unit - since the investments are spread over a period of time, buying fewer units during rising markets and buying more units during falling markets reduces the average cost per unit of one's investments - this concept is known as Rupee Cost Averaging.

The investors would now be able to use this popular tool to invest in SIP through their broker (MFI) and enjoy the conveniences afforded by BSE's exchange platform for Mutual Funds. The brokers (MFIs) can register SIP for their clients on the STAR MF platform in either the physical mode or through the demat (dematerialised) mode. The detailed operating instructions as well as the process guidelines for transacting in SIP for those schemes that are allowed on the STAR MF platform can be viewed on the following URL:
http://bseindia.com/about/sip.asp