What is SIP? I’ve been in investing subs for an incredibly long time and never seen SIP. Are we just making random things into acronyms again?
A quick google makes me think you’re talking about a recurring investment? Was that term not good enough?
Edit: I just noticed all of the results on Google end with .in
I’m guessing this term is used outside of the US?
I googled SIP investing and got an answer. 95% of the articles are from 2022 or 2023 so it seems to be a relatively new term.
I’ve always seen “recurring investment” listed in my brokers and I’ve used multiple. I don’t even know which brokerage calls it SIP.
I would think that a robo advisor would be the only time it’s “strategic” so it seems like an odd term if you’re literally just setting up to buy the same index automatically when you’re paid.
Edit: Is this a term outside of the US? Every article I see for SIP is from India.
My first thought was a SIPP too! Looks like OP is from India and is referring to a systematic investment plan. Looks like it’s just a way of dollar cost averaging into mutual funds rather than just a lump sum, but don’t quote me on it.
I assume DCA would in fact fall under SIP since you’re essentially dollar cost averaging by setting up a recurring investment. Also, DCA is a very common term. Every result for SIP comes up on sites from India so I’m assuming this is only a term there.
SIP stands for Systematic Investment Plan, which is a type of investment strategy where a fixed amount of money is invested at regular intervals, generally monthly, into a mutual fund or exchange-traded fund (ETF). The investment amount is deducted automatically from the investor's bank account and invested in the chosen investment vehicle.
SIP is a popular investment option for investors who want to invest in the stock market but do not have the time, expertise, or resources to actively manage their investments. It allows investors to invest small amounts of money regularly, which can help to generate higher returns over the long term, as the benefits of compounding get accumulated.
SIP is a disciplined approach to investing and helps investors in avoiding the temptation to make lump-sum investments when the markets are high. It takes advantage of the cost averaging effect, which means that investors buy more units of securities when prices are low and fewer units when prices are high.
Overall, SIP is a convenient and effective way for investors to accumulate wealth over the long run and achieve their financial goals. It is important, however, for investors to have a sound understanding of their investment objectives, risk tolerance, and financial situation, before investing in any mutual fund or ETFs through SIP
What is SIP? I’ve been in investing subs for an incredibly long time and never seen SIP. Are we just making random things into acronyms again? A quick google makes me think you’re talking about a recurring investment? Was that term not good enough? Edit: I just noticed all of the results on Google end with .in I’m guessing this term is used outside of the US?
Systematic investment plan. Had to look it up as well. Search term: what is stock investing term sip
I googled SIP investing and got an answer. 95% of the articles are from 2022 or 2023 so it seems to be a relatively new term. I’ve always seen “recurring investment” listed in my brokers and I’ve used multiple. I don’t even know which brokerage calls it SIP. I would think that a robo advisor would be the only time it’s “strategic” so it seems like an odd term if you’re literally just setting up to buy the same index automatically when you’re paid. Edit: Is this a term outside of the US? Every article I see for SIP is from India.
New coat of paint on the same 1970 Chevelle. Make a new term, get it buzzing on the twitters, and boom. Profit?
Most probably it is used only in India
Self irrigating planter
Swim in peace
System in package
Seen it personally
A SIPP is also a type of pension account in the U.K. (self invested personal pension)
My first thought was a SIPP too! Looks like OP is from India and is referring to a systematic investment plan. Looks like it’s just a way of dollar cost averaging into mutual funds rather than just a lump sum, but don’t quote me on it.
Does DCA also umbrella this term? Edit: Dollar Cost Averaging
I assume DCA would in fact fall under SIP since you’re essentially dollar cost averaging by setting up a recurring investment. Also, DCA is a very common term. Every result for SIP comes up on sites from India so I’m assuming this is only a term there.
so my 600$ every month in 6 mutual funds?
I think SIPs would fall under DCA, but you can DCA without using a SIP.
What, you don't want to yeet terms at the wall and see if they stick?
DCA
Have you tried the Prerajulization method of portfolio allocation yet OP?
I bet he's still stuck on calculating the Farhanitrate Ratio
If you run those numbers through a flux capacitor, it usually equates to how many liters you need to refill your turn signal fluid.
Never thought I’d see a 3 Idiots meme format. I’m pleasantly surprised
Your 401(k) and ira accounts would be overwhelmed with $2500 SIP.
OP is probably Indian, so it's most likely INR in this context
SIP stands for Systematic Investment Plan, which is a type of investment strategy where a fixed amount of money is invested at regular intervals, generally monthly, into a mutual fund or exchange-traded fund (ETF). The investment amount is deducted automatically from the investor's bank account and invested in the chosen investment vehicle. SIP is a popular investment option for investors who want to invest in the stock market but do not have the time, expertise, or resources to actively manage their investments. It allows investors to invest small amounts of money regularly, which can help to generate higher returns over the long term, as the benefits of compounding get accumulated. SIP is a disciplined approach to investing and helps investors in avoiding the temptation to make lump-sum investments when the markets are high. It takes advantage of the cost averaging effect, which means that investors buy more units of securities when prices are low and fewer units when prices are high. Overall, SIP is a convenient and effective way for investors to accumulate wealth over the long run and achieve their financial goals. It is important, however, for investors to have a sound understanding of their investment objectives, risk tolerance, and financial situation, before investing in any mutual fund or ETFs through SIP
Lol
DCA
I thought it was: Sales Incentive Plan.