Systematic Investment Plan (SIP)
A Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds allowing investors to invest a fixed amount regularly (daily, weekly, monthly, or quarterly) into a selected mutual fund scheme.
Why SIP Works
- Rupee Cost Averaging: You buy more units when prices are low and fewer units when prices are high.
- Power of Compounding: Regular small contributions grow exponentially over long time horizons.
- Financial Discipline: Automates savings directly from your bank account.