What is SIP?
SIP means a systematic investment plan. It
is the easiest way to invest in mutual funds at any intervals viz.
weekly, monthly or quarterly as per preferences. A SIP model is nothing but a
method where a fixed amount is auto-debited from the investor’s bank account
and a certain amount of mutual fund units are bought based on their price on the
date of investment. This way when the market is low, more units come into
investor’s portfolio which later at the time of liquidation can be sold
handsomely.
Insurance Insurance means protection from financial loss in case of death, disability or destruction. Insurance is a prudent way of transfer of such risk to an insurance company. The insurer and insured get legal contract for the insurance, which is called Insurance Policy. The insurance policy has details about the conditions and circumstances under which the insurance company will pay out the insurance amount to either the insured person or the nominees. Insurance is a way of protecting yourself and your family from a financial loss. Generally, the premium for a big insurance cover is much lesser in terms of money paid. The insurance company takes this risk of providing a high cover for a small premium because very few insured people actually end up claiming the insurance. This is why you get insurance for a big amount at a low price. Types of Insurance:- Life Insurance:- Life insurance is insurance on your life. You buy life insurance to make sure y...
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