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SIPs: building a consistent investing habit

Learning resources · Fundamentals

A Systematic Investment Plan (SIP) lets you invest a chosen amount in a mutual fund at regular intervals. It can bring consistency to an investing habit, but does not remove the risks of the underlying fund.

Start with your circumstances

Consider your cash flow, investment horizon and ability to handle changes in investment value before deciding to invest. Understand the scheme’s investment objective, risk level, fees and exit conditions.

Consistency is not a guarantee

Regular investing does not assure a profit or protect against loss. Read all scheme-related documents carefully and review your approach as your circumstances change.

Further reading: AMFI Investor Corner.

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