What is SIP?

Background

A Systematic Investment Plan (SIP) is a way to invest a fixed rupee amount at regular intervals, usually monthly, into mutual funds. It brings discipline and rupee cost averaging to long-term investing.

Explanation

Instead of making irregular lump-sum investments, you commit to a monthly SIP—say ₹10,000—into an equity or hybrid fund. This reduces timing risk, smooths volatility and fits neatly with salaried income. SIPs are ideal for building a retirement corpus over decades.

Example

₹10,000 per month at an assumed 12% return for 25 years grows to more than ₹1 crore. Combining SIPs with EPF and NPS makes your retirement plan far more robust.

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