Which of these features makes SIPs particularly suitable for new investors? Option: Requiring large initial investments, Demanding extensive market knowledge, Enforcing disciplined investing habits, Guaranteeing specific investment returns

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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

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

"It allows investors to benefit from market fluctuations"

"It guarantees high returns over time"

"It eliminates the need for active portfolio management"

"It encourages regular saving and investing habits"

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Which type of investment is generally considered more suitable for investors new to the market?

Systematic Investment Plans (SIPs)

Lump sum investments

High-yield bonds

Futures contracts

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How does a Systematic Investment Plan (SIP) work?

"It invests small amounts regularly in a chosen mutual fund"

"It allows investors to buy and sell stocks rapidly based on market fluctuations"

"It guarantees a fixed interest rate regardless of market performance"

"It invests a large sum of money at once for maximum returns"

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What is the core principle behind the SIP investment strategy?

Investing small amounts regularly over time to build wealth gradually

Investing a large sum of money at once to maximize returns

Investing only in high-risk, high-reward schemes for quick profits

Timing the market to buy and sell at the most opportune moments

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What is a systematic investment plan (SIP) designed to achieve?

"Time the market perfectly to maximize profits"

"Encourage disciplined investing and leverage compounding"

"Avoid any potential losses in mutual fund investments"

"Guarantee a fixed return regardless of market conditions"