Which statement is wrong regarding Systematic Investment Plan:

Advantage of long terms and short-term gains

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It has huge risks but high returns

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Redemption of units can be done

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Safe and transparent mode of investment

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Solution

The correct option is B It has huge risks but high returns
Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds to investors, allowing them to invest small amounts periodically instead of lump sums. It is good for investors who don't have much financial market's understanding. It involves lesser risks and low returns because investment is done in small amounts over a period of time.

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In a Systematic Investment Plan, investments are done only on yearly basis.

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