A Systematic Investment Plan (SIP) is one of the most powerful tools for building long-term wealth. Instead of investing a lump sum, you invest a fixed amount every month — taking advantage of rupee cost averaging and the power of compounding.
How SIP Works
When you invest through SIP, you buy more units when markets are low and fewer when markets are high. Over time, this averages out your cost and reduces the risk of bad timing.
FV = P × [((1 + r)^n - 1) / r] × (1 + r)
P = monthly amount, r = monthly rate, n = number of months
Example: ₹5,000/month for 10 years at 12%
Total Invested
₹6,00,000
Returns
₹5,61,695
Final Value
₹11,61,695
Tips for SIP Success
- Start early — time in market beats timing the market
- Increase SIP amount by 10% each year (step-up SIP)
- Stay invested through market volatility
- Diversify across equity, debt, and hybrid funds
Calculate your SIP returns
Use our SIP Calculator →