Systematic Investment Plan

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SIP

Beginner Level India Financial Markets 2 views

Definition

An investment method where a fixed amount is invested regularly in mutual funds.

Detailed Explanation

SIP promotes disciplined investing and benefits from rupee cost averaging. Investors can start with as low as ₹500/month. SIPs can be daily, weekly, or monthly.

Example

Investing ₹5,000 monthly in an equity mutual fund via SIP for 10 years can build significant wealth.

Local Context (India)

SIP has democratized investing in India, with over 7 crore SIP accounts as of 2024.

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