Simple interest is a type of interest calculation where interest is only calculated on the initial amount, or principal, of a loan or investment. It is a linear function of time, which means that the interest rate remains constant throughout the life of the loan or investment.
A systematic investment plan (SIP) is an investment strategy that involves making regular, fixed-sum investments into a particular asset, such as a mutual fund or exchange-traded fund (ETF). SIPs are a popular way to invest because they allow investors to take advantage of the power of compounding and dollar-cost averaging.
A Systematic Withdrawal Plan (SWP) is a financial strategy offered by mutual funds, allowing investors to receive a regular stream of income from their investments. It is particularly useful for individuals looking to create a steady income stream during their retirement years or any other period when they need regular cash flow.