What is SIP?

A Systematic Investment Plan (SIP), more popularly known as SIP, is a facility offered by mutual funds to the investors to invest in a disciplined manner. SIP facility allows an investor to invest a fixed amount of money at pre-defined intervals in the selected mutual fund scheme. The fixed amount of money can be as low as Rs. 500, while the pre-defined SIP intervals can be on a weekly/monthly/quarterly/semi-annually or annual basis. By taking the SIP route to investments, the investor invests in a time-bound manner without worrying about the market dynamics and stands to benefit in the long-term due to average costing and power of compounding.

What is SEP?

Systematic Equity Plan (SEP) allows you to invest a pre-specified sum of money or buy a pre- specified quantity of shares in a consistent manner. You can automate your equity investments by setting up an SEP.

This facility is provided by stock brokers where you have your demat account. For example

What is RD?

RD is recurring deposit. This is one of the traditional feature of money savings. The same is provided by your bank where you hold the account. Now a days the interest provided in Recurring deposit is very low, but the same will be useful to meet un-occurred expenses in future.

What is PPF?

The PPF account or Public Provident Fund scheme is one of the most popular long-term saving-cum-investment products, mainly due to its combination of safety, returns and tax savings. The PPF account comes with 15 year lock-in period having option to withdraw some portion of money from 6th year onwards. Currently the interset provided in PPF account is 7.1% annual.

What is FD?

FD is Fixed deposit. This is also one of the traditional saving scheme provided by your bank. Although the returns in Fixed deposit scheme is very low considering taxation involved in the same but will be useful to meet un-seen expenses occurred in future.

"Each depositors deposit in a bank is insured up to a maximum of ₹5 lakh, for both principal and interest. Now in India with an increase in insurance amount from ₹1 lakh to ₹5 lakh is going to cover 98.3% of all deposit account,"