A Systematic Investment Plan (SIP) lets you invest a fixed amount every month into a mutual fund scheme. The amount is deducted from your bank account and units are allotted at that day’s NAV.
Because you buy more units when markets are lower and fewer when they are higher, SIPs automatically average your purchase price over time. This is called rupee-cost averaging — it is a behaviour tool, not a return guarantee.
What a SIP does not do: it does not protect against market falls, guarantee a particular return, or replace the need for an emergency fund and basic insurance.
Start with an amount you can sustain without touching essentials. Use the SIP Calculator on this site to see illustrative outcomes, then talk through the real numbers with your family or adviser.