What is SIP?

What is SIP

What is SIP?

Systematic Investment Plan or SIP is a method of investing in mutual funds wherein an investor chooses a mutual fund scheme and invests the fixed amount of his choice at fixed intervals.

SIPs make investing disciplined, simple, and affordable, enabling long-term wealth creation by leveraging the power of compounding and market averaging.

Types of SIP:

  1. Top-up SIP
    Allows you to increase the investment amount periodically, helping you grow your investments in line with your income.
  2. Flexible SIP
    Offers flexibility to adjust the investment amount based on your financial situation, allowing higher contributions during good times and smaller amounts during constraints.
  3. Perpetual SIP
    Has no fixed end date, letting you invest continuously until you decide to stop or withdraw funds. This is ideal for long-term wealth-building goals.

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