“Little drops of water make the mighty ocean”

Systematic Investment Plan (SIP) is nothing but small amount of money invested on a pre-set date every month into specific mutual fund/funds. One of the best ways of entering equity market is through Systematic Investment Plans (SIPs) in equity mutual funds, as it brings in an investment discipline for the investor. SIPs help to achieve financial goals by investing small sums of money on a monthly basis that eventually leads to accumulating the required corpus for reaching the goal.

How Does it work ? A SIP is a flexible and easy investment plan. Your money is auto-debited from your bank account and invested into a specific mutual fund scheme.You are allocated certain number of units based on the ongoing market rate (called NAV or net asset value) for the day. 
Every time you invest money, additional units of the scheme are purchased at the market rate and added to your account. Hence, units are bought at different rates and investors benefit from Rupee-Cost Averaging and the Power of Compounding

In short – Why SIP?

  • Disciplined approach to investments

  • No need to time the market

  • Rupee Cost Averaging -Benefit from Volatility

  • Power of Compounding – Small investments create Big Kitty over time

  • Lighter on the wallet

  • Reap benefits of starting early


Secret to achieving Much More with SIP

  • List down your dreams and goals and work out a plan to achieve them through SIP

  • Ascertain the monthly/quarterly SIP required to achieve your goals

  • Identify the scheme(s) in which you would like to invest and complete the formalities for SIP investment including forms and cheques

  • Invest for the long term as the twin benefits of power of compounding and rupee-cost averaging work through different market cycles

Diversify your investments for your dreams through multiple SIPs in different schemes to optimise returns as per your needs

SIP Calculator –

  • Calculates Maturity Value of an SIP Account and also year-wise balance of the account.


For More Financial Calculators, Click Here.