Multiple choice

Systematic Investment plan has the following advantages:

  1. investor can start investments with amounts as low as Rs. 500 or Rs. 1000 per month

  2. investor gets into the habbit of investing

  3. investor reaps the benefits of Rupee cost averaging

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Systematic Investment Plans offer all three advantages: they allow starting investments with small amounts (Rs. 500-1000), help investors develop disciplined investing habits, and provide rupee cost averaging benefits by buying more units when prices are low and fewer when prices are high.

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