Longing to go on a vacation to Switzerland? Planning to buy a bigger house but don’t have funds? For all this and a lot more trust SIP.

Heard of RDs?For the uninitiated SIP or Systematic Investment Planning is all about investing small amounts of money over a period of time in mutual funds. A SIP is just like the Recurring deposits of banks that were oh-so-common in the past.

More like a piggy bank saving, Recurring deposits meant putting in a certain amount of money every month within a certain period for instance by the 10th or 15th of the month. You could choose your investment period –one, two or three years. And your bank would tell you beforehand how much your maturity amount would be at the end of your chosen term.

Gain market linked returns: A SIP is very similar to a Recurring deposit. You invest small amounts over a period of time but the difference is that you just can’t predict the maturity amount. Wondering why? Because mutual funds are linked to the stock market. Yes- and that’s the beauty – you stand to gain market linked returns unlike a recurring where your interest amount would be fixed.

Can’t stomach the highs and lows of the stock market? SIP is for you: The economy is now on a roll – and experts are optimistic that the economy will grow at around 9% or even more. As of now the market is around 16,000 levels- the right time to invest in a SIP for, you enter when the price is low. That apart, a SIP is just the right thing to do if you’re not comfortable investing directly in stocks. Its like taking a risk with a safety net. So go the SIP way and you can be sure about taking that long desired vacation or buying your dream house.