m
MoneyExplain
(AKA: SIP, Systematic Investment Plan)

SIP (Systematic Investment Plan)

Executive Definition

A disciplined investment method allowing investors to invest a fixed sum regularly into mutual funds.

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.

Calculate & Model Your Finances

Put financial definitions into practice with our free interactive calculators.

← Back to Full Dictionary Browse All Articles →
The Intelligence Protocol

The MoneyExplain Brief

Deep-dive breakdowns of India's shifting economic landscape. Pure signal, zero noise, once a week.