SIP FAQs

A SIP (Systematic Investment Plan) is a way of investing in mutual funds where you invest a fixed amount regularly, usually every month. Instead of investing a big amount at once, SIP allows you to invest small amounts over time.

You can start a SIP with a small amount, often as low as a few hundred rupees per month. The amount depends on the mutual fund scheme, but SIP is designed to be affordable for most people. 

SIP itself is just a method of investing. The safety depends on the mutual fund you choose and market conditions. Mutual fund investments are subject to market risks, so returns are not guaranteed.

Yes. SIPs are flexible. You can pause, stop, or change your SIP amount at any time if your financial situation changes.

If you miss a SIP payment, the investment for that month does not happen. There is usually no penalty, and your SIP continues for the next scheduled month.

SIP helps reduce the risk of investing all your money at one time and encourages discipline. Lump sum investing may be suitable in some situations, but SIP is often preferred for regular and long-term investing. 

SIP works best when continued for a long period. The longer you stay invested, the better the chances of benefiting from compounding and market growth. 

Yes. You can increase your SIP amount over time as your income grows. Many investors choose to increase their SIP annually. 

No. SIP does not guarantee returns. Returns depend on market performance and the mutual fund scheme you are invested in. 

Yes. SIP is considered beginner-friendly because it is simple, disciplined, and does not require market timing. 

Yes. Most mutual funds allow you to withdraw your invested amount, subject to exit load or conditions of the scheme. 

No. SIP is meant for long-term investing. Regular reviews are helpful, but daily tracking is not necessary 

SIP is mainly suitable for long-term goals, but it can also be used for medium-term planning depending on the fund and risk level.