Investments
SIP
pronounced: [Ess-Eye-Pee]
Systematic Investment Plan allows investors to invest a fixed amount in mutual funds at regular intervals, typically monthly.
It leverages rupee cost averaging for long-term wealth creation.
Key Facts
| Fact | Value |
|---|---|
| Interest Compounding | Monthly |
Example
Investing ₹10,000/month in an equity mutual fund via SIP for 10 years at 12% p.a. returns ₹23.2 lakh. Your total investment = ₹12 lakh. Long-term capital gains tax of 12.5% applies on gains above ₹1.25 lakh.
Frequently Asked Questions
Last updated: 21 May 2026