finance

SIP (Systematic Investment Plan)

An investment strategy where a fixed amount is regularly invested in a mutual fund at set intervals.

A Systematic Investment Plan (SIP) lets you invest a fixed amount (e.g., ₹5,000) monthly in a mutual fund. It leverages rupee-cost averaging to reduce the impact of market volatility.

How SIP Works

You buy more units when prices are low and fewer when prices are high. Over time, this averages out the cost per unit, reducing timing risk.

Step-Up SIP

A step-up SIP increases your investment by a fixed percentage each year (e.g., 10%). This aligns with salary growth and significantly boosts long-term wealth.

Related Calculators

📊 SIP Calculator📊 Investment Calculator

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Related Terms

APR (Annual Percentage Rate)

The yearly cost of borrowing money expressed as a percentage, including fees and interest.

Compound Interest

Interest calculated on both the initial principal and the accumulated interest from previous periods.

Amortization

The process of spreading loan payments over time so each payment covers both principal and interest.

ROI (Return on Investment)

A ratio measuring the gain or loss from an investment relative to its cost, expressed as a percentage.

Net Worth

The total value of all assets minus all liabilities, representing overall financial health.

Equity

The ownership value in an asset after subtracting any debts owed against it.