Difference between sip and mutual fund

Systematic Investment Plan (SIP) and Mutual Funds are closely related but refer to different aspects of investing.

SIP is a method of investing in mutual funds. It allows investors to contribute a fixed amount regularly (weekly, monthly, quarterly) into a selected mutual fund scheme.

A mutual fund is a pool of funds collected from multiple investors to invest in securities like stocks, bonds, money market instruments, and other assets, managed by a professional fund manager.

SIP is a method of investing in mutual funds that allows for regular, fixed investments, while mutual funds are the investment vehicles that pool funds from multiple investors to invest in various securities.