Systematic Investment Plan (SIP) Explained

 A Systematic Investment Plan (SIP) allows you to invest a fixed amount in a mutual fund scheme at regular intervals (e.g., monthly). It helps you build wealth gradually through disciplined investing, cost averaging, and compounding.

 SIP is better for regular savers and volatile markets because it averages out the cost over time. Lump sum may give better returns in a rising market, but SIP reduces risk and builds long-term habits.

Yes. SIPs are flexible—you can pause, stop, or modify them at any time without penalties. However, exiting too early may affect your long-term returns.

You can start a SIP with as little as ₹100 or ₹500/month, depending on the mutual fund scheme.

SIP itself is just a mode of investing. The safety depends on the type of mutual fund (equity, debt, hybrid). Equity SIPs carry market risk, while debt SIPs are more stable.

 No, SIP returns are not guaranteed as mutual funds are subject to market risks. However, long-term SIPs tend to smooth out volatility and generate consistent returns over time.

e this text.

SIPs in Equity Linked Saving Schemes (ELSS) offer tax deductions under Section 80C (up to ₹1.5 lakh/year). Other SIPs are taxable depending on the fund type and holding period.

 Ideally, you should continue SIPs until your financial goals are met. Longer durations (5–10+ years) help you benefit from compounding and market cycles.

 You can track SIPs via:

• Mutual fund app/website (like Groww, Coin, NJ Wealth)
  
  
• Consolidated Account Statement (CAS)
  
  
• Portfolio trackers or apps like ET Money, Kuvera