What Is Systematic Investment Plan ?

A Systematic Investment Plan (SIP) is an investment tool which allows the investor to invest a fixed amount at periodically in a Mutual Fund scheme.

Investing a set amount at a predetermined frequency is how SIP operates. This allows investors to invest hassle-free and without having to time the market.

Benefits of SIP

A Systematic Investment Plan (SIP) offers numerous benefits to investors. Here are some key benefits:

Rupee cost averaging

This method involves investing a fixed sum regularly, allowing you to acquire more units when prices are low and fewer when they're higher, effectively leveling out your investment cost over time.

Power of compounding

The power of compounding is the silent force behind SIPs, turning your investment returns into more earnings. This compounding effect significantly boosts your investments over time, transforming even small contributions into a substantial fund.

Convenient investment method

SIPs offer a convenient investment method, enabling easy and hassle-free contributions towards Mutual Funds. This systematic approach simplifies investing for individuals, regardless of their familiarity with the financial markets, making it an accessible avenue for building wealth over time.

Flexible investment amount

This feature of SIPs empowers investors with the ability to adjust their investment amounts according to their financial capacities. This flexibility ensures that investing remains within reach for everyone, accommodating changes in financial circumstances without compromising on investment objectives.


Investing through SIPs is cost-effective. It minimizes the financial burden on investors. This method allows for the gradual building of a portfolio with relatively small amounts of money, reducing the need for substantial upfront investments and making it an economical option for investors