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Financial glossary

SIP

A SIP, or systematic investment plan, is a pattern of investing a chosen amount at regular intervals.

What SIP means

SIP describes regular contributions, commonly monthly. It is a contribution method, not a guaranteed-return product.

How a SIP projection works

A projection compounds each contribution for its remaining time. Earlier contributions generally have more periods to grow than later contributions.

Simple example

A monthly contribution of ₹5,000 for one year produces ₹60,000 of total contributions before any estimated gain or loss.

Important limitation

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