New Delhi, April 12 -- If you are a young investor considering mutual funds or someone looking to add MFs to your portfolio, a systematic investment plan i.e. SIP may be the most practical step towards making a move in this direction.

An SIP allows investors to deduct a fixed sum into your preferred MF scheme each month directly from your bank account and spread out your investment over time. The monthly interval also helps build financial discipline for the long run.

Investing through an SIP means that your purchase units of the MF each time you invest in a fund. The number of units are equivalent to the amount invested. For e.g. for each unit costing Rs.10, and investment of Rs.500 each months gets you 50 units. This means that the pr...