Question 6 of 13
What is one of the key benefits of a Systematic Investment Plan (SIP)?
A
It allows investors to time the market and buy low.
B
It helps in rupee cost averaging by investing a fixed amount regularly.
C
It guarantees a fixed return on investment.
D
It is available only for equity schemes.
Correct Option:
B
Explanation
A Systematic Investment Plan (SIP) helps investors benefit from rupee cost averaging by investing a fixed amount at regular intervals. This approach enables investors to buy more units when prices are low and fewer units when prices are high, reducing the impact of market volatility and encouraging disciplined long-term investing.
