What is SIP in Mutual Funds?

A Systematic Investment Plan (SIP) is a method of investing in a mutual fund scheme. In the SIP route, a pre-determined amount is invested at regular intervals, such as monthly or quarterly. The investor purchases mutual fund units based on the scheme’s applicable Net Asset Value (NAV) on the transaction date. For example, 

• An investor may invest ₹5,000 every month in a mutual fund through an SIP. 
• The number of units purchased can vary because the NAV changes over time.

SIP vs Lump Sum Investment in India

Note: SIP does not guarantee a particular return. The value of a mutual fund investment can fluctuate based on the performance of its underlying securities and prevailing market conditions.

Invest in Direct NSE Equities With Trade246

Trade246 is a premier multi-asset trading platform offering access to seven different market segments, namely, NSE, NFO, US Stocks, Indices (both domestic + international), Forex, Commodities, and Crypto. 

Register today and trade across all the segments at lifetime 0* brokerage. Also, gain unlimited access to our advanced TradingView charts and 100+ technical indicators for market analysis.

*Statutory taxes and charges may apply.