What is the primary advantage of a Systematic Investment Plan (SIP) during periods of market volatility?

Predicting market cycles accurately Eliminating investment risk entirely Purchasing more units at lower prices Guaranteeing high returns regardless of market conditions

How does the concept of compounding benefit investors using SIPs?

By generating fixed returns on a monthly basis By allowing investors to time the market perfectly By reinvesting returns, leading to exponential growth By reducing the initial investment amount required

What is the main goal of Rupee Cost Averaging in SIP investments?

Investing a lump sum amount at the optimal time Predicting future market fluctuations with certainty Reducing the average cost per unit over time Maximizing short-term profits through frequent trading

Which of these features makes SIPs particularly suitable for new investors?

Requiring large initial investments Demanding extensive market knowledge Enforcing disciplined investing habits Guaranteeing specific investment returns

What is the minimum investment amount typically required to start a SIP in mutual funds?

₹100 ₹1,000 ₹10,000 ₹1,00,000