A systematic investment plan (SIP) helps you to invest a fixed amount at periodic intervals (daily, monthly, quarterly) over a period of time. As the investor’s income goes up, he is able to set aside a higher surplus for investing.
He can use this surplus to start a new SIP or top-up an ongoing SIP using the SIP top-up facility provided by many mutual funds. The investor can increase the amount of SIP instalment by a fixed amount at pre-defined intervals. This enhances the flexibility of the investor.