SIP

An SIP (Systematic Investment Plan) is a facility to invest a fixed amount in a mutual fund scheme at a regular interval, usually monthly. The amount is auto-debited and buys units at that day's applicable NAV (Net Asset Value). Because the amount stays fixed, you buy more units when prices fall and fewer when they rise — this is rupee-cost averaging. An SIP suits goal-based investing because it matches investing to how income arrives. It does not remove market risk: returns vary with the market and are not assured.