What is a Systematic Investment Plan (SIP)?

"A method of investing a lump sum in mutual funds." "A way to invest in real estate through fixed monthly payments." "A strategy for investing in bonds with a fixed interest rate." "A method of investing in mutual funds where a fixed amount is invested at regular intervals."

What is the key advantage of rupee cost averaging in SIP investments?

"It guarantees high returns regardless of market fluctuations." "It allows investors to buy more units when the market is low and fewer units when the market is high." "It eliminates the need for market analysis and timing the investments." "It ensures a fixed return rate on the investment."

Which type of SIP allows investors to increase their investment amount periodically?

"Flexible SIP" "Perpetual SIP" "Top-up SIP" "Regular SIP"

What is the primary benefit of a Perpetual SIP?

"It allows investors to change the investment amount frequently." "It offers a guaranteed return on investment." "It enables investors to continue investments without a fixed end date." "It provides tax benefits on the invested amount."

How does the power of compounding benefit SIP investments?

"It ensures a fixed interest rate on the investment, leading to predictable returns." "It allows investors to withdraw their returns at any time without penalty." "It helps grow the investment significantly over time due to the reinvestment of returns." "It minimizes the risk of market volatility by averaging out the investment cost."