What is SIP?
Systematic Investment Plan (SIP) allows investors to invest a fixed amount regularly in mutual funds and benefit from long term compounding.
Benefits of SIP
SIP encourages disciplined investing and helps reduce the risk of market timing. Investors can start with small monthly contributions and grow wealth steadily.
Frequently Asked Questions
What is SIP?
SIP is a method of investing a fixed amount regularly in mutual funds.
How does SIP calculator work?
SIP calculator estimates future value based on monthly investment, return rate and duration.
What return rate should I assume?
Most investors assume around 10-12% annual return for long term equity mutual fund investments.
Is SIP better than lump sum?
SIP reduces market timing risk and promotes disciplined investing.