What is sip investment and how it works?
SIP or Systematic Investment Plan is an easy way to grow your money by regularly investing a fixed sum in mutual funds. This is how it works. Imagine instead of putting in a big chunk of money all at once, you invest a small amount either every month or even every week, just like how you might save pocket money or set aside cash for a hobby.
Think of it as setting up an automatic transfer that invests money for you, no matter what’s happening in the market. Over time, this helps you buy more units when prices are low and fewer when prices are high. That’s called “rupee cost averaging,” and it takes the guesswork—and a bit of the stress—out of investing.
The best part? You don’t need to be an expert or have a lot of money to start. Even a few hundred rupees every month is enough. And because the money is invested regularly, it encourages disciplined habits that can help you create wealth. In short, SIP is a smart, hassle-free way to save and invest for your future, one step at a time, just like a friend looking out for you.