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The SIPSmall bets, long game

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Money Sense0007

The SIP

Small bets, long game

A fixed amount put into an investment on the same day every month.

I · You08 / 53

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0007 · The Primer08 / 53

A Systematic Investment Plan puts a fixed sum into a mutual fund every month. You do not pick the right moment. You buy every month. When markets drop, your fixed sum buys more units. When markets rise, your holdings grow. The system removes decision-making. That is why it works.

  • 500 rupees per month at 12% for 25 years grows to about 9.4 lakh from 1.5 lakh invested.
  • Anyone with a bank account and a PAN card can start a SIP. The minimum is often 100 rupees.
SourceAMFI India SIP data
Rupee cost averaging, standard finance

Mechanism · GKL 0007

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