← Mutual Funds and SIP · Lesson 2 of 3
SIP and the power of compounding
This lesson is not yet available in that language; showing English for now.
A SIP (systematic investment plan) means investing a fixed amount every month, even ₹500 or ₹1,000.
- Compounding: returns can earn further returns over time, so time matters a lot.
- Averaging: a fixed SIP buys more units when prices are low and fewer when high.
Illustration only: ₹5,000 a month for 20 years at an assumed 12% a year could grow to roughly ₹50 lakh. Actual returns may be higher or lower and are not guaranteed. Try the SIP calculator with your own numbers.
🙋 Talk to an expert
Want help choosing a SIP amount for your goal? Talk to our team, free of charge.
❓ Ask a question about this lesson
Our team will reply by call or WhatsApp, free of charge.
⚖️ This content is for general education and awareness only. It is not a recommendation to buy any product. Please speak to us for guidance on your own situation. Insurance is the subject matter of solicitation. For more details on risk factors, terms and conditions, please read the sales brochure / policy wording carefully before concluding a sale. Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Past performance is not indicative of future returns. Tax benefits are as per prevailing tax laws, which are subject to change. We are insurance agents / mutual fund distributors. For mutual funds we offer guidance as a distributor and do not charge advisory fees. IRDAI / AMFI registration details to be added.