blogBy Investor Education Team
Understanding SIP: A Beginner's Guide
Learn the basics of Systematic Investment Plans (SIP) and how they help you build wealth over time through disciplined investing.
What is SIP?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in a mutual fund scheme. It instills financial discipline and helps you benefit from rupee-cost averaging.
Benefits of SIP
- Rupee Cost Averaging: You buy more units when prices are low and fewer when high
- Power of Compounding: Small regular investments grow significantly over time
- Flexibility: Start with as little as ₹500/month
- Convenience: Auto-debit from your bank account
How to Start?
Starting a SIP is simple. Choose a fund, decide your investment amount and frequency, complete KYC, and set up an auto-debit mandate.