Why a SIP works
A SIP builds the habit of saving and investing regularly. It softens the effect of market swings and lets compounding work over time.
- Encourages disciplined investing
- No need to time the market
- Start with small amounts, from ₹500
- Rupee cost averaging reduces risk
- Ideal for long-term wealth creation
- Flexible and convenient
How it works
On each SIP date a fixed amount is invested and units are allotted at that day's NAV (Net Asset Value).
Over time your average purchase cost evens out. This is called rupee cost averaging.
The power of compounding
Compounding means earning returns on your returns as well as on your principal. The longer you stay invested, the bigger the effect, which is why starting early matters more than starting big.
SIP in tax-saving funds (ELSS)
A SIP in an ELSS fund qualifies for a deduction under Section 80C (old tax regime). Each instalment is locked in for three years from its own investment date.
Tax benefits are as per prevailing tax laws and are subject to change. Deductions under 80C / 80D apply to the old tax regime.
Flexible by design
- Increase or decrease the SIP amount
- Pause temporarily
- Stop anytime
- Redeem partially if needed
- Add an annual top-up (step-up SIP)
Myths about SIPs
A SIP works best when you keep going steadily for the long term, whatever the market is doing.
Who should start one?
In short
Invest small amounts regularly, stay patient, choose the right funds, and let market growth, rupee cost averaging and compounding do the rest. Good guidance keeps your SIPs tied to your goals and risk profile.
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing.
Past performance may or may not be sustained in future.
