Srinagar, March 10 -- A Systematic Investment Plan or SIP allows investors to contribute a fixed sum regularly-monthly, weekly, or quarterly-into mutual funds. This method encourages disciplined investing, capitalizing on rupee cost averaging. By investing consistently over time, SIPs help cushion against market volatility and leverage the power of compounding, making them ideal for those with a long-term horizon.

Through a Systematic Transfer Plan, investors can schedule regular transfers of a predetermined amount from one mutual fund to another. Often used to gradually shift money from a debt fund to an equity fund, STPs help manage risk by rebalancing the portfolio in line with market conditions. They offer a tactical approach to enha...