Systematic Investment Plan (SIP)

  • With SIP, investors commit to contributing a fixed amount of money (such as ₹1,000, ₹5,000, or more) at regular intervals (monthly, quarterly) into a mutual fund of their choice.
  • These contributions are made automatically through post-dated cheques or electronic fund transfers.

About Systematic Investment Plan (SIP)

  • One of the main advantages of SIP is rupee cost averaging. This means that the investor buys more units when the market is down (when the price is low) and fewer units when the market is up (when the price is high). This reduces the average cost of investment over time.
  • This strategy helps mitigate the impact of market volatility and makes SIPs ideal for long-term investments.
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