Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Systematic Investment Plan is a method of investing fixed amounts at regular intervals in mutual funds, automating disciplined wealth creation.
SIP means investing a fixed sum every month in a mutual fund — like a recurring deposit but in markets, with averaging benefits.
SIP registers a bank mandate debiting fixed amounts on chosen dates. Each instalment buys units at prevailing NAV, implementing rupee cost averaging. Step-up SIP increases amount annually. Pause and cancel facilities vary by platform.
₹10,000 monthly SIP in an equity fund for 10 years at 12% CAGR grows to roughly ₹23 lakh from ₹12 lakh invested — compounding and averaging at work.
Many funds allow SIP from ₹100–₹500. Some platforms require ₹500 or ₹1,000 minimum depending on scheme.
Yes. Missing a debit skips that month's purchase without penalty in most schemes, though consistent investing yields better outcomes.
No. SIP works for debt, hybrid, index, and gold funds too — match fund category to your goal timeline.