Introduction
A Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds to help investors invest disciplined sums regularly. Instead of trying to time the stock market, you invest a fixed amount weekly, monthly, or quarterly.
Benefits of SIP
- Disciplined Savings: Encourages the habit of saving regularly.
- Rupee Cost Averaging: You buy more units when prices are low and fewer when prices are high.
- Compounding Interest: Allows your money to grow exponentially over time.