How SIP Works
SIP (Systematic Investment Plan) is a method of investing fixed amounts at regular intervals. Instead of lumpsum, you invest consistently over time, benefiting from rupee cost averaging.
The Power of SIP
₹10,000 monthly SIP for 20 years at 12% annual return:
- Total Invested: ₹24 lakh
- Returns: ₹76 lakh
- Total Value: ₹100 lakh (4x investment)
When Market Drops (The Best Time)
During downturns, your fixed SIP amount buys more units at lower prices. When market recovers, these cheaper units become more valuable—that's the benefit of rupee cost averaging.