What is a SIP?
A SIP (Systematic Investment Plan) invests a fixed amount in a fund on a fixed date every month, automatically from your bank account. You can start with as little as ₹100 in some funds.
Because you invest every month, you buy more units when prices are low and fewer when prices are high. Over time this averages out your cost (rupee cost averaging) and builds the habit of regular saving.
You can pause or stop a SIP at any time without penalty. The units you already hold stay invested.
Example
₹5,000 a month for 15 years at an assumed 12% a year could grow to about ₹25 lakh, of which ₹9 lakh is your own investment. Try the SIP calculator for your numbers.
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