How beneficial is to invest in SIP?

SIP is very popular in market and it is more beneficial in comparison to other mutual funds and share. Here we diversified our income different security so we get benefit. If one security in loss than other is in profit so we cover up loss. I am also planning to invest in SIP and want to get more knowledge about it.

SIP - Systematic investment plan is a very similar concept like a recurring deposit investment. In simple terms SIP is just a process and not an investment by itself. Through this process of recurring investing you can choose to invest the money in any of the various type of mutual funds like - liquid mutual fund, debt mutual fund, balanced mutual or equity mutual fund. Insurance is primarily a risk mitigation tool. Like car insurance is bought as we want to protect ourselves from an financial impact of an accident of our car. Similarly we can use different forms of insurance to protect us from different issues: a) Health Insurance - To help us with financial aid in case of an hospitalization or medical urgency. b) Life Insurance - To ensure that our dependents get a decent financial support if something happens to us (if you are one of the primary bread winners for the family) . So considering that both of them have different functions and objectives, it may not be ideal to compare them. Many a times various insurance policies are sold as an investment, this can lead to inefficient allocation of your total savings. It is best to keep your insurance requirement and investment requirement separate. Hope this is what you are looking for.