Insurance and Investment - SIP

What is SIP?

Systematic Investment Plan (SIP) is a disciplined way of investing in mutual funds. Instead of investing a lump sum, you invest a fixed amount regularly (monthly/quarterly).

Key Features of SIP

• Start Small – Invest as low as ₹500 per month.

• Disciplined Saving – Helps build a regular saving habit.

• Rupee Cost Averaging – Reduces risk by averaging purchase price over time.

• Power of Compounding – Small investments grow big over time.

• Flexible – You can increase, decrease, or stop SIP anytime.

Example

If you invest ₹5,000/month for 10 years in a mutual fund with an average 12% annual return, your corpus could grow to around ₹11.6 Lakhs.

Benefits of SIP

• No need to time the market

• Affordable & convenient

• Long-term wealth creation

• Diversification through mutual funds