Glossary
SIP: meaning, example and why it matters
Systematic investment plan: investing a fixed amount in a mutual fund at regular intervals, such as monthly. It spreads purchases over time; it does not guarantee returns.
Worked example
₹5,000 a month for 3 years is 36 × ₹5,000 = ₹1,80,000 invested. If the NAV is ₹20 in month 1 and ₹25 in month 2 the instalments buy 250 and 200 units.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
A SIP spreads purchases over time, so you do not have to pick one entry date, but it does not remove market risk.
Related terms
See it in practice
Frequently asked questions
Does a SIP guarantee returns?
No. A SIP is a way of investing, not a return promise. The value depends on the fund's NAV when you redeem.
Is this page investment advice?
No. SIP is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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