Risk reduction of systematic investment plans

Systematic Investment Plan is a recurring investment pattern. By implementing this style of investing, a great deal of risk can be reduced. The paper’s main objective is to understand how a systematic investment plan works and the importance of awareness of this style of investing amongst young inexperienced investors. It also shows how inculcating a disciplined routine of investing could decrease risk and help save a lot of money. Through primary data collection in this study we also try to understand the preference and choices of young investors and the risk they are willing to take. A detailed mathematical comparison is shown between a systematic investment plan and the traditional lump sum investing. Although it may affect the upside return too, majority of people who do not have advanced knowledge and working of the markets should make it a must to adopt this pattern of investing.