Definition of SIP (Systematic Investment Plan)
A Systematic Investment Plan (SIP) is a method of investing a fixed amount of money at regular intervals — usually monthly — into a mutual fund scheme. Instead of investing a large lump sum at once, SIP allows you to invest small amounts like ₹500 or ₹1,000 every month.
The key benefit of SIP is Rupee Cost Averaging — you buy more units when the market is low and fewer when it is high, which lowers your average cost over time. SIPs are ideal for salaried individuals who want to build wealth gradually without timing the market. As of April 2026, India's monthly SIP inflow crossed ₹26,000 crore, with 7.9 crore active SIP accounts.
SIPs can be started for as low as ₹100/month in some funds and can be increased, paused, or stopped anytime. They are also eligible for Step-Up SIP, where your contribution automatically increases every year. Use InvestKit's SIP Goal Planner to calculate how much you need to invest each month to reach your financial goals.