What is SIP? Systematic withdrawal plan Basic information might help you. PART 2

A Systematic Investment Plan (SIP) is a simple and disciplined way to start investing, especially for beginners. In SIP, you invest a fixed amount of money at regular intervals—such as monthly or quarterly—into a mutual fund. This approach helps you build wealth gradually without the pressure of investing a large amount at once. One of the biggest advantages of SIP is discipline. By investing regularly, you develop a habit of saving and investing, which is essential for long-term financial success. SIP also benefits from rupee cost averaging. This means you buy more mutual fund units when prices are low and fewer units when prices are high, which can reduce the overall cost of investment over time. Another key benefit is the power of compounding. When you stay invested for a long period, the returns you earn also start generating returns, helping your money grow faster. SIPs are flexible—you can start with a small amount, increase or decrease your investment, or even pause it if needed. For beginners, SIP is ideal because it is easy to understand, affordable, and less risky compared to lump-sum investing. With patience and consistency, SIP can help you achieve long-term goals like education, buying a home, or retirement.