Systematic Investment Plan (SIP)

A Systematic Investment Plan (SIP) is a popular investment method where an individual invests a fixed amount regularly, usually monthly, in mutual funds. It helps investors build wealth gradually by benefiting from rupee cost averaging and compounding returns over time. SIPs are flexible with low minimum investment amounts, often starting at ₹500, and do not require market timing, making them convenient for disciplined investing. The returns on SIPs vary as they depend on the performance of the chosen mutual fund and market conditions. SIPs have gained popularity in India as a disciplined, hassle-free way to invest for long-term financial goals.