SIP
Systematic Investment Plan
Investment PlanningA method of investing a fixed sum regularly in mutual funds. It automates investing and leverages rupee cost averaging.
Formula
FV = P × [((1 + i)^n - 1) / i] × (1 + i)
Why it matters
SIP reduces timing risk through rupee cost averaging, you buy more units when prices are low. Even small monthly amounts compound significantly over decades.
Indian example
Related terms
Learn the concept
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