Lesson 2 of 5 · SIP explained simply
What Is an SIP?
1 min read · Beginner
SIP stands for Systematic Investment Plan. It is a method of investing a fixed amount at regular intervals in a mutual fund.
For example, you might invest ₹2,000 every month instead of investing ₹24,000 at once.
Why do people use SIPs?
- They help create a regular investing habit.
- They make it easier to invest smaller amounts periodically.
- When investing at different market prices, they purchase units at different NAVs.
Does an SIP guarantee profits?
No. An SIP does not protect you from market losses or guarantee a particular return. Its outcome depends on the investment, the market and the period invested.
Remember: Choose an amount you can sustain, and align your investment with your goals and ability to take risk.
This lesson is for general education. Mutual fund investments are subject to market risks. Read all scheme related documents carefully before investing. Disclosures