What Is a SIP? Systematic Investment Plans Explained
4 min read · 2026-08-03
A SIP (Systematic Investment Plan) is simply investing a fixed amount — say ₹5,000 — into a mutual fund on the same date every month.
Why it works - Rupee-cost averaging: you automatically buy more units when prices are low and fewer when high, averaging your cost. - Discipline: it's automatic, so you invest regardless of market noise. - Compounding: returns earn returns. Small monthly amounts become large corpuses over decades.
A quick example ₹10,000/month for 15 years at ~12% grows to roughly ₹50 lakh, of which only ₹18 lakh is your own contribution — the rest is compounding.
Getting started 1. Pick a goal and horizon. 2. Choose a fund (explore by FundScore or use the wizard). 3. Decide a monthly amount you can sustain. 4. Check the SIP calculator to set realistic expectations.
Remember: mutual funds carry market risk, and past performance doesn't guarantee future returns.
Put this into practice
Find funds matched to your goal, or back-test a SIP on real NAVs.
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Educational content only — not investment advice. Mutual fund investments are subject to market risk; read all scheme-related documents carefully.