Systematic Investment Plan (SIP)
A SIP lets you invest a fixed amount every month into a mutual fund — automatically. Think of it like a recurring deposit, but in the stock market. That means slightly more risk, but also much better returns over time.
Why SIP Works
Compounding
Your money makes money. Start early, start small. Delay means investing far more later for the same result.
| Month | Amount | NAV | Units |
|---|---|---|---|
| 1st | ₹1,000 | ₹10 | 100.00 |
| 2nd | ₹1,000 | ₹12 | 83.33 |
| 3rd | ₹1,000 | ₹9 | 111.11 |
| Total | ₹3,000 | — | 294.44 |
Rupee Cost Averaging
Same amount every month means you buy more units when prices fall, fewer when they rise. Your average cost stays low — automatically.
Average cost = ₹10.19 per unit
Even though prices swung between ₹9 and ₹12.
Convenience — fully automatic
Set it up once via ECS or post-dated cheques, and your investment runs every month without any effort from you.
Four Simple Rules of SIP
Start early
even ₹500 a month matters more at 25 than ₹5,000 at 40
Pick wisely
choose well-diversified, consistently performing funds
Stay invested
don't stop during market dips; that's actually when SIP helps most
Don't wait
there's no perfect time. Start now