SIP stand for Systematic investment plan, which means that your mutual fund investments are managed in a systematic and disciplined manner. Mutual funds are created when several corporations pool in their securities to create a fund. They are of various kinds ranging from diversified equity, debt, to balanced funds. Systematic Investment Plan or SIP is not a type of mutual fund. It is a method of investing in these schemes.

How does SIP work? There are two ways one can invest. One can invest a lump sum through one time payment at time of entry or one can choose to make smaller regular payments periodically as investment. The second type of investment strategy is termed as SIP. What are the benefits of SIP schemes? Firstly it turns you into a disciplined investor. Secondly, it forces you to save at least a small portion of your earning regularly. It makes one understand the importance of savings for future. Thirdly, you get to avoid panic sales during times of crisis. Fourthly, you can invest as little as five hundred to one thousand rupees per month to invest in MF. Many small time investors cannot afford to make huge one time payments towards MF. SIP offers them a chance to participate in greater diversification at low costs.

Sundaram AMC has it corporate office at located at Sundaram Asset Management Co, Sundaram Towers, II Floor, 46 White Road, in Chennai. It has some great schemes that are really performing well. Sundaram happens to offer as little as Rs. 250 as monthly installments, Rs 750 for quarterly installments on open end Equity and Fixed Income schemes. Here are some top performing SIP MF schemes from Sundaram.

• Sundaram Tax Saver
• Sundaram Select Focus
• Sundaram India Leadership Fund
• Sundaram S.M.I.L.E Fund