A Systematic Investment Plan (SIP) is one of the simplest and most effective ways to build wealth over time. It combines two powerful elements of investing — rupee-cost averaging and the power of compounding.
On one hand, rupee-cost averaging takes away the worry of timing the market by balancing your investments — you buy fewer units when the market is high and more when it’s low. On the other hand, compounding helps your money grow exponentially over the years.
Why SIPs help you stay disciplined
SIPs also help maintain financial discipline. Since the SIP amount is automatically debited every month from your bank account, your investment continues consistently without emotional decision-making.
Another benefit is flexibility — you can start with a small amount and increase it grad