What is SIP?
SIP stands for Systematic Investment Plan. It is a way to invest a fixed amount regularly, usually every month, into mutual funds.
Definition
A SIP automates recurring investing so that you build wealth gradually instead of investing a large lump sum at once.
Example
If you invest ₹5,000 monthly for 10 years at an assumed 12% annual return, your total invested amount is ₹6,00,000 and the projected corpus can be significantly higher due to compounding.
Use case
Use SIP for long-term goals like retirement, children’s education, or wealth creation while spreading market risk across time.