Save And Invest

What is a SIP?

Systematic investment plan. "Little drops of water make the mighty ocean". A SIP is the easiest way of investing in equity market. Under SIP a small amount of money is invested on a pre-set date every month into a specific scheme of Mutual Fund. It basically helps inculcate the habit of saving and building wealth for the future.

What will I get?



Period (Yrs)




Expected Return on Investment @ an assumed rate of return  10% for 5 years




That is, every month, an individual can commit to investing, say, Rs 1,000 in a fund. At the end of a year, so he would have invested Rs 12,000 in the fund.

Let's say the NAV on the day investment is made is Rs 20; so for Rs.1000 he would get 50 units.

Next month, if the NAV is Rs 25. He would get 40 units.

The following month,if the NAV is Rs 18. He would get 55.56 units.

So, after three months, he would have 145.56 units. So on an average; he would have paid around Rs 21 per unit. This is because, when the NAV is high, he get fewer units per Rs 1,000. When the NAV falls, you get more units per Rs 1,000.

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.