As common investor doesn’t have enough time and resources, SIP proves to be a viable option for them. Listed below are the important benefits of this instrument.

1. Reduces Risk because of Rupee Cost Averaging
2. SIP can be started with very small amount of money
3. Timing the market is not necessary
4. Long term financial goal can be aligned with SIP
5. Disciplined approach towards Investment helps in controlling the emotions

• Normal SIP - SIP made in regular Equity Schemes can be withdraw , increased or decreased freely. All your gains will be Taxed according to FIFO ( First in First Out). All Gain from units having completed 365 days, will be treated as capital Gain.
• Special SIP (ELSS) -SIP made in ELSS ( Equity linked Savings schemes) are eligible for deduction from taxable income under Section 80C of the Income Tax Act.In comparison to traditional investment avenues like PPF, NSC under section 80C of the Income tax Act, such investments have the shortest lock in period of 3 years.