The Basics of SIP: A Step-by-Step Guide

SIP stands for Systematic Investment Plan. It's a method of investing in mutual funds where you regularly contribute a fixed amount of money at predefined intervals (e.g., monthly) rather than investing a lump sum all at once. What is SIP and how does it work?

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Why is SIP a popular investment strategy?

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How to set up a SIP account and start investing.

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[{"selector":"#anim-c52b1cf4-f14d-4a6f-9aeb-47337db200f0","keyframes":{"opacity":[0,1]},"delay":700,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1cb21711-cefb-4c71-8239-3546508b8010","keyframes":{"transform":["translate3d(0px, 425.55570%, 0)","translate3d(0px, 0px, 0)"]},"delay":700,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Select the mutual fund(s) you want to invest in.

[{"selector":"#anim-d43819c9-708d-4be7-b757-ef129915844a [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(21.874999829338595%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":1300,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-d6316db0-3796-457c-919d-076491c47bba","keyframes":{"opacity":[0,1]},"delay":700,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-87885a20-4f1f-4a33-b06c-3c23fa444ade","keyframes":{"transform":["translate3d(0px, 369.57661%, 0)","translate3d(0px, 0px, 0)"]},"delay":700,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Determine the investment amount and frequency (e.g., monthly).

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[{"selector":"#anim-0aa1a036-09da-46aa-a547-0541b7d91e5d [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(28.881750742935424%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":1300,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-3c766d21-1674-4ec1-ac6e-67e185c8f69c","keyframes":{"opacity":[0,1]},"delay":700,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3d6c2876-7ad8-4a12-8db9-5d2f6c2da853","keyframes":{"transform":["translate3d(0px, 354.20074%, 0)","translate3d(0px, 0px, 0)"]},"delay":700,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Authorize the SIP mandate, and your investments will begin as scheduled.

[{"selector":"#anim-fe956fc0-388a-4e7f-8aba-5345afcd3d53 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(34.84374985814956%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":1300,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-7b9c3ad7-03b8-4f91-a993-e708ae74d05e","keyframes":{"opacity":[0,1]},"delay":700,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7e9549a9-c7ff-452b-9e41-17eb214c9d70","keyframes":{"transform":["translate3d(0px, 234.41732%, 0)","translate3d(0px, 0px, 0)"]},"delay":700,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Setting up a SIP account is relatively straightforward and can usually be done online through mutual fund websites or investment apps.

[{"selector":"#anim-78c7bea6-7c33-4d69-ba38-5b0c18cfb171","keyframes":{"opacity":[0,1]},"delay":700,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1039b756-308f-4735-b1e6-236270008d01","keyframes":{"transform":["translate3d(0px, 307.96649%, 0)","translate3d(0px, 0px, 0)"]},"delay":700,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Next: Top 3 Small Cap Funds to Multiply Your SIPs Next