A Systematic Investment Plan (SIP) is a disciplined way of investing in mutual funds. It allows you to invest a fixed amount at regular intervals (usually monthly).
Power of Compounding
SIPs benefit from the power of compounding. By investing early and regularly, you can build a significant corpus over time. The longer you stay invested, the more your money grows.
Rupee Cost Averaging
SIPs also help in averaging out the cost of investment. You buy more units when the market is low and fewer units when the market is high, reducing the impact of market volatility.