SIP

A Systematic Investment Plan (SIP) is a method of investing in mutual funds in a disciplined and regular manner. Instead of making a one-time investment, SIP allows individuals to invest a fixed amount at regular intervals — typically monthly. This approach helps in developing a habit of consistent saving and makes it easier for people to start their investment journey, even with small amounts.

SIP works by automatically deducting a fixed amount from your bank account and investing it in your chosen mutual fund scheme. Over time, this regular investment allows you to accumulate units of the fund at different market prices, helping to average out the cost per unit — a concept known as rupee cost averaging. It also helps in compounding your returns, as each investment earns returns which in turn generate more earnings.

One of the biggest advantages of SIP is that it encourages financial discipline. Since you invest a fixed amount regularly, you are less affected by market volatility and emotional decisions. SIPs are also flexible — you can start with as little as ₹500 per month, increase or decrease your amount, and even stop the investment whenever you want. Over time, SIPs can help you achieve long-term financial goals such as retirement, education, or buying a house.