What Is SIP?
A beginner-friendly guide to SIP investing, compounding, rupee-cost averaging, and return estimates.
SIP in simple terms
A Systematic Investment Plan, or SIP, is a way to invest a fixed amount regularly. Many people use monthly SIPs for mutual funds because the habit is simple and automatic.
Instead of trying to guess the perfect day to invest, SIP spreads investments across many months.
Why people use SIPs
SIPs can help build discipline and make investing feel less intimidating. They also use rupee-cost averaging: when prices are high, the same amount buys fewer units; when prices are low, it buys more.
Over long periods, compounding can become powerful, but it needs time and patience.
What the calculator shows
The SIP calculator estimates invested amount, returns, and future value based on a steady monthly investment and assumed annual return.
It does not include taxes, fund expense ratios, exit loads, inflation, or changes in investment amount.
FAQ
Is SIP the same as a mutual fund?
No. SIP is a method of investing regularly. A mutual fund is one possible investment product you can invest in through SIP.
Are SIP returns guaranteed?
No. Market-linked investments can go up or down. A calculator only estimates possible outcomes.