A Systematic Investment Plan (SIP) is a method of investing in mutual funds that allows an individual to invest a set amount in a mutual fund scheme of his or her choice at regular intervals.

SIP, like a recurring deposit, allows an investor to invest a fixed amount at regular periods (monthly or quarterly). Rather than investing a large sum all at once in the lump sum method, more investors now prefer to contribute modest amounts on a regular basis in the SIP style. You can begin investing in a mutual fund plan with as little as Rs 100 per month through SIP.

There is no time like NOW to start investing. The earlier you start investing, the better it is. This gives the invested money more time in the market, thereby increasing the growth potential of your investments.

A SIP calculator can help you determine the right amount for starting a SIP. You should choose an amount that you can invest regularly without stopping your investments.

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