There is a great amount of interest among investors to ensure that they are investing in mutual funds through a systematic investment plan (SIP). However many investors do not take the time or make an effort to understand what a SIP is actually. This often leads to a situation where they make the wrong interpretation and this could lead to them adopting a route that is completely opposite to what a SIP actually requires. This requires some basic understanding and here is a look at the entire term and how one should know its various details.