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SIP

A Systematic Investment Plan lets an investor contribute a fixed amount into a mutual fund at regular intervals.
An investor starts with Rs. 2,000 per month instead of waiting for a large lump sum. The habit matters as much as the amount.
SIPs became popular in India as mutual fund platforms simplified recurring investments for retail investors.

Definition

A Systematic Investment Plan lets an investor contribute a fixed amount into a mutual fund at regular intervals.

Case Study

An investor starts with Rs. 2,000 per month instead of waiting for a large lump sum. The habit matters as much as the amount.

Historical Reference

SIPs became popular in India as mutual fund platforms simplified recurring investments for retail investors.

Illustration

SIP illustration