Understanding SIP Investment

A Systematic Investment Plan, or SIP, is a method of investing a fixed amount of money regularly in a mutual fund scheme. Unlike lump-sum investments, where you invest a significant amount of money at once, SIP allows you to invest smaller amounts at periodic intervals—be it weekly, monthly, or quarterly.

SIPs are particularly popular in equity mutual funds but can be applied to debt funds, hybrid funds, and other categories. They offer a disciplined approach to investing, ensuring that you regularly set aside money for your financial goals.