What is a SIP (Systematic Investment Plan)?

A SIP (Systematic Investment Plan) is a way to invest a fixed amount in a mutual fund automatically at regular intervals — usually a set date every month. It's the most popular way Indians invest in mutual funds, and for good reason.

Why SIPs work

• Discipline — you invest automatically, regardless of mood or market noise.
• Rupee-cost averaging — your fixed amount buys more units when prices fall and fewer when they rise, smoothing your average cost.
• Compounding — small, regular amounts grow into a large corpus over 10–20 years.
• Low barrier — many funds allow SIPs from just ₹100–500 a month.

How SIP returns are measured

Because each instalment is invested on a different date, a SIP's return is measured by XIRR, not a simple percentage.

A SIP doesn't guarantee profit — markets can fall — but over long horizons it's a proven, low-stress way to build wealth. Not sure between SIP and a one-shot investment? See SIP vs Lumpsum.

→ Project your SIP with the SIP calculator, or backtest one on a real fund.