Finance
What is A SIP?
A SIP, or systematic investment plan, is a way to invest a fixed amount in a mutual fund automatically every month instead of all at once. It builds the habit of investing, averages out market ups and downs, and turns small regular amounts into a large corpus over time.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains a sip.
Key things to understand
- 1Invest a fixed amount monthly, automatically.
- 2Spreads buying across market highs and lows.
- 3Turns small regular sums into long-term wealth.
- 4Powered by compounding over many years.
Frequently asked questions
- How is a SIP different from a lump sum?
- A SIP invests gradually each month, averaging your cost; a lump sum puts everything in at once, exposing you more to timing.
- Can I start a SIP with a small amount?
- Yes — many mutual funds allow SIPs from as little as ₹100–₹500 per month.
- What is rupee-cost averaging?
- Investing a fixed sum regularly buys more units when prices are low and fewer when high — smoothing your average cost.