Systematic Investment Plan (SIP) is a type of investment plan offered by mutual funds. It allows investors to invest a fixed amount of money regularly, usually monthly or quarterly, into a mutual fund scheme. SIP is a disciplined approach to investing, as it helps investors to invest regularly and avoid the temptation to time the market.
SIPs are a convenient and flexible way of investing in mutual funds, as investors can start with a small amount and increase their investment over time. SIPs also offer the benefit of rupee cost averaging, which means that investors buy more units when the price is low and fewer units when the price is high, thereby reducing the overall cost of investment.
SIPs are suitable for investors who are looking to build a long-term investment portfolio and are willing to take a moderate level of risk