A SIP, or systematic investment plan, is a way of investing a fixed amount in a mutual fund every month. People use it to build money for long goals: a down payment, a child's education, retirement.
Why time matters more than the amount
Returns are earned on earlier returns, so the same monthly amount grows much more over 15 years than over 5. Try different numbers on our SIP calculator and step-up SIP calculator.
What can go wrong
- Market-linked funds can fall, sometimes sharply, and stay low for a while.
- Past returns do not predict future ones.
- Stopping during a fall locks in the loss.
Good habits
- Match the investment to the goal's timeline.
- Raise the SIP when your income rises.
- Keep an emergency fund separately, before you invest.
- Read the scheme documents, and check costs.
A SIP is a habit, not a shortcut. The habit is what builds the money.
We are a property company, not an investment adviser. For advice on which funds suit you, speak to a SEBI-registered investment adviser.