India, Nov. 24 -- Systematic investment plan means putting money in mutual funds over a period of time in a fixed amount. For example, investing regularly every month rather than at one go. It builds up wealth over time through regular disciplined investment, as well as through rupee cost averaging and power compounding. SIPs facilitate automatic bank debits from the account of the investor, so it is no hassle in investing.

A mutual fund SIP is an investment plan that invests a fixed sum of cash in a mutual fund scheme and automatically deducts that amount from your bank account at fixed intervals. For example, one could implement mutual fund SIPs monthly or biannually. You get allocated a certain number of units based on the fund's NAV ...