SIP (Systematic Investment Plan) is a disciplined manner of investing in mutual funds. In this plan, an investor can invest a fixed amount in mutual fund schemes (of their own choice) at a fixed interval (daily, weekly, monthly, or quarterly). With an SIP, the investor gets to decide the amount and choose an SIP date offered by the asset management companies.
You need to note that SIP is not a product of investment but a method of investing in mutual fund schemes, where the minimum SIP amount starts at Rs. 500. Whereas the other method to invest in a mutual fund scheme is through lumpsum, where you make an investment only once in bulk.
Ideally, the first step is to determine the amount to invest as SIP. An individual needs to
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