A Systematic Investment Plan (SIP) is an investment method offered by mutual funds in India, allowing investors to invest a fixed amount of money at regular intervals (e.g., monthly or quarterly) in a chosen mutual fund scheme.

Here's a breakdown of the key aspects:

• Regular Investments: Instead of investing a lump sum, you invest a pre-determined amount regularly.
• Rupee Cost Averaging: SIPs benefit from rupee cost averaging. When the market is down, your fixed investment buys more units of the fund. When the market is up, it buys fewer units. Over time, this averages out the cost per unit.
• Compounding: SIPs allow your investments to grow through the power of compounding. Returns earned are reinvested, generating further returns.
• Disciplined Investing: SIPs encourage disciplined investing habits.
• Accessibility: SIPs can be started with relatively small amounts, making them accessible to a wide range of investors.

Benefits of SIP:

• Disciplined investing
• Rupee cost averaging
• Power of compounding
• Convenience
• Flexibility

For more information, you can refer to:

• Investopedia's definition of Systematic Investment Plan