What is an SIP in mutual funds?
A Systematic Investment Plan (SIP) is a method of investing a fixed amount of money into a mutual fund scheme at regular intervals—typically monthly or quarterly. SIPs offer a disciplined way to build wealth over time and reduce the risk of market timing.
Understanding SIPs
With SIPs on FYERS, investors can:
- Automate periodic investments in direct mutual fund schemes
- Start with low investment amounts (e.g., ₹500)
- Use bank mandates for auto-debit and seamless fund allocation
SIPs follow the rupee-cost averaging principle—more units are bought when the NAV is low and fewer when it’s high. Over time, this averages out the cost of investment and helps mitigate volatility.
What If...
| Scenario | Explanation |
|---|
| You want to invest monthly in a mutual fund | Set up an SIP on FYERS and automate payments through your linked bank mandate. |
| You miss an SIP due to low balance | The SIP may be skipped for that cycle. You can wait for the next or manually invest. |
| You want to modify SIP amount | Cancel the existing SIP and set up a new one with your desired investment amount. |
| You stop SIP but keep units | Your existing mutual fund units stay in your Demat and continue to generate returns. |
SIPs are ideal for long-term wealth creation. They encourage financial discipline and help spread investment risk across market cycles.
Last updated: 16 Jun 2025
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