When investing in a mutual fund scheme you put in a lump sum amount or do it in a staggered manner using the systematic investment plan (SIP) route. The minimum amount you can you invest via SIP will vary from fund house to fund house and even scheme to scheme.For instance, IDFC Premier Equity Fund has fixed the minimum SIP amount of Rs 2,000 along with minimum 6 SIP instalments whereas IDFC Sterling Equity Fund's minimum SIP amount is Rs 1,000. Investing through SIP ensures that you are investing regularly and in a hassle-free manner.There is no eligibility criteria for investing via SIP. For instance, for a SIP investment made in an equity mutual fund with a start date of 15 June 2017, it will be exempted from tax only after 15 June, 2018. To close the account, you just have to submit the application of closure request to the mutual fund house.

Source: Economic Times November 24, 2017 09:45 UTC