Ans: ESIPs allow investors to fix their investment amount in various shares, which will be purchased later periodically. With ESIPs, investors can invest in stocks in a disciplined manner. As a result, their investments spread over a period of time, and they can also benefit from rupee cost averaging.  Mutual funds also offer certain advantages. People who do not have the required skills to identify the right stocks or monitor them can invest in mutual funds and benefit from its professional fund management. Moreover, they have a low ticket size, so one can start investing with an amount which is as low as Rs 500.