Calculate your potential returns from Systematic Investment Plans (SIPs) in mutual funds
A Systematic Investment Plan (SIP) is a method of investing in mutual funds where you invest a fixed amount regularly (monthly, quarterly, etc.) instead of making a lump sum investment. SIP allows you to benefit from rupee cost averaging and the power of compounding.
When you invest through SIP, a fixed amount is deducted from your bank account periodically and invested in the mutual fund scheme of your choice. Each SIP installment buys units of the fund at the prevailing Net Asset Value (NAV).
While lump sum investing involves investing a large amount at once, SIP allows you to spread your investment over time. SIP is generally considered less risky as it averages out the purchase cost and reduces the impact of market timing.