SIP

SIP stands for Systematic Investment Plan, a method of investing in mutual funds in a disciplined manner. In an SIP, an investor invests a fixed amount of money at regular intervals (e.g., monthly or quarterly), rather than making a one-time lump sum investment. This approach is commonly used in mutual funds to take advantage of rupee cost averaging, where more units are bought when prices are low and fewer units when prices are high, helping to spread out market risks over time.

SIP is popular for its affordability, allowing investors to start with small amounts, and for fostering consistent saving habits. It is suitable for individuals looking to achieve long-term financial goals, such as retirement, buying a house, or funding children's education, by steadily building wealth over time.