SIP (Systematic Investment Plan)
Definition
A method of investing a fixed amount in a mutual fund at regular intervals.A Systematic Investment Plan is a way of investing in mutual funds by contributing a fixed sum at regular intervals (usually monthly) rather than a lump sum. It spreads the entry price over time (rupee-cost averaging) and lets returns compound. Returns are market-linked and not guaranteed.
Related guides
Related terms
- Compound Interest — Interest calculated on both the principal and previously accumulated interest.
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