What is SIP?
An educational overview of Systematic Investment Plan — how it works, benefits, and risks.
Definition & How It Works
SIP (Systematic Investment Plan) is a method of investing in mutual funds where you invest a fixed amount at regular intervals (e.g. monthly) instead of a lumpsum. Each SIP installment buys units of the chosen scheme at that day's NAV (Net Asset Value). Over time, your investment accumulates units and may benefit from compounding and rupee cost averaging.
Benefits
- Power of compounding: Returns on your investment can earn returns over time when reinvested.
- Rupee cost averaging: Buying regularly can average out purchase prices across market ups and downs.
- Discipline: Helps build a habit of regular savings.
- Small amounts: You can start with modest monthly amounts.
Start Planning
Use our calculators and educational content to plan your investments. We provide tools and information only — we do not recommend specific schemes or products.
Risks of Market-Linked Returns
SIP invests in market-linked instruments. Returns are not guaranteed. NAV can go up or down based on market conditions. Past performance does not indicate future results. You may get back less than what you invested.
Educational Disclaimer
This page is for educational purposes only. It does not constitute investment advice. We do not recommend any specific mutual fund scheme or investment product. Please read all scheme-related documents carefully before investing. Consult a qualified advisor for personalised guidance.