Introduction
SIP (Systematic Investment Plan) is a method of investing in mutual funds where you invest a fixed amount regularly.
How SIP Works
You invest monthly:
- ₹500
- ₹1000
- ₹5000
Units are purchased based on market price.
Benefits of SIP
- Rupee cost averaging
- Compounding growth
- Low starting amount
- Easy to manage
Example
₹3000/month for 15 years @12%:
₹5.4 lakh → ₹15 lakh approx
Who Should Invest in SIP
- Beginners
- Salaried individuals
- Long-term investors
Conclusion
SIP is best for disciplined and long-term wealth creation.
FAQ
Is SIP better than FD?
Yes, for long term
