What does SIP stand for in the context of investment?

"Systematic Investment Plan" "Standard Investment Portfolio" "Secured Investment Protocol" "Simple Investment Procedure"

What is the primary advantage of investing in mutual funds through SIP compared to lump sum investment?

"Guaranteed higher returns" "Eliminates market risk" "Rupee cost averaging" "Lower tax implications"

How are returns from equity mutual funds taxed in India?

"Tax-free regardless of redemption period" "15% tax if redeemed within a year, no tax after a year" "20% tax with indexation benefit" "Taxed according to individual income tax slab"

Can an investor stop a SIP before its intended duration?

"No, SIPs cannot be stopped prematurely" "Yes, but with a penalty fee" "Yes, and the invested amount can be redeemed or remain invested" "Only if the mutual fund is underperforming"

What is the maximum tax deduction allowed under Section 80C of the Income Tax Act for investments in ELSS mutual funds via SIP?

"₹50,000" "₹1,00,000" "₹1,50,000" "₹2,00,000"

What is the recommended approach for increasing the amount of an existing SIP?

"Contact the mutual fund company for a direct increase" "Stop the existing SIP and start a new one with the higher amount" "Start a new SIP in the same fund with the increased amount" "Increase the SIP amount only during periods of high market performance"

Is there a lock-in period for SIP investments in open-ended mutual funds?

"Yes, typically 3 years" "Yes, it depends on the mutual fund's terms" "No, there is no lock-in period" "Only if the investment is made through a financial advisor"

How is the exit load calculated for SIP investments in mutual funds?

"Applied to the total invested amount" "Calculated on the average NAV of the investment" "Based on the individual SIP installment being redeemed" "Determined by the fund manager's discretion"

What is the key difference between SIP and RD (Recurring Deposit)?

"SIP offers tax benefits, while RD does not" "RD has a fixed return rate, while SIP returns are variable" "SIP is only for long-term investments, while RD is for short-term" "RD is considered riskier than SIP"

Why is SIP considered a suitable investment strategy for the long term?

"It guarantees high returns over time" "It allows investors to benefit from market fluctuations" "It encourages regular saving and investing habits" "It eliminates the need for active portfolio management"