Investing Basics Beginner

SIP (Systematic Investment Plan)

💡 In plain English: A way to invest in mutual funds automatically each month — India's version of dollar-cost averaging.

Definition

A method of investing a fixed amount in a mutual fund at regular intervals (usually monthly), regardless of market conditions.

📌 Real-World Example

A ₹5,000/month SIP in a large-cap fund at 12% p.a. for 15 years could hypothetically grow to ~₹25.2 lakhs (illustrative, assuming constant 12% returns — not guaranteed), on a total investment of ₹9 lakhs.

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Related Terms

Dollar-Cost Averaging (DCA)
Invest the same fixed amount regularly regardless of market levels...
Mutual Fund
A pool of money from many investors managed by a professional fund...
NAV (Net Asset Value)
The price per unit of a mutual fund — calculated daily after market close.
XIRR (Extended Internal Rate of Return)
Your actual annualised return when you've made multiple...
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⚠️ Educational Content: All definitions and examples on this page are for educational and consultancy reference purposes only. They do not constitute financial, legal, or investment advice. Moneykar is not registered with SEBI, CBUAE, SCA, or any financial regulator. Consult a qualified professional before making financial decisions.

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