A systematic investment plan, or SIP, puts a fixed amount into a mutual fund at regular intervals — usually monthly.
Averaging out the ups and downs
When prices are low your fixed amount buys more units; when they are high it buys fewer. Over time this smooths the average price you pay.
Small amounts, long horizons
Because returns are reinvested, growth builds on growth. Starting earlier with a smaller amount often beats starting later with a larger one.
Things to check
Look at the fund's costs, what it invests in and how long you plan to stay. This is general information, not advice for your situation.
Series · Part 1 of 4Money Basics
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