SIP
What is SIP?
A clear explanation of systematic investment plans, what they do and what they do not guarantee.
Publisher: SmartCalculatorsLast updated: 17 August 2026
The idea
A Systematic Investment Plan (SIP) invests a chosen amount at a regular interval, most often monthly. You are not trying to pick a single lucky day. You are buying units over time at whatever price the market offers that day.
SIPs do not remove market risk. They change how cash enters the market. If prices fall, the same rupee amount buys more units; if prices rise, it buys fewer.
What a SIP is not
A SIP is not a deposit, not a guaranteed-return product and not a substitute for an emergency fund. The ending value depends on the underlying investment and on whether you keep the installments going.
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Frequently asked questions
Is a SIP a product?
No. It is a way of investing a fixed amount on a schedule, usually into a mutual fund. The fund is the product; the SIP is the contribution method.
Does SIP lock my money?
That depends on the fund. Open-ended equity funds typically allow redemptions, sometimes with an exit load in the early months. ELSS funds have a three-year lock-in.
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SmartCalculators provides educational calculators and estimates. Results are for informational purposes only and should not be considered financial, tax, investment, legal or professional advice.