📖 7 min read | Investing | April 2026
Short answer: a SIP invests a fixed amount monthly in a mutual fund, so you buy more units when prices fall and fewer when they rise. At a 12% long-run average, ₹5,000 a month becomes about ₹50 lakh in 20 years against ₹12 lakh invested.
Rates and slabs are indicative, as of August 2026
SIP is not a product — it is a method. A standing instruction to invest a fixed amount every month in a mutual fund automatically. No timing, no guessing, no stress.
When markets are high, your ₹5,000 buys fewer units. When they fall, same ₹5,000 buys more. This averages out your cost over time. You do not need to predict market direction — SIP handles it.
1. Download Groww/Zerodha Coin/Kuvera (free, SEBI-registered). 2. Complete KYC with PAN+Aadhaar (5 min). 3. Search "Nifty 50 Index Fund" — pick UTI/HDFC/ICICI. 4. Set monthly SIP (even ₹500). 5. Forget it and let it grow.
Beginners: go index fund. It tracks the market, has low fees, and has beaten most active funds over 10+ years. No stock-picking needed.
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Written and checked by the PaisaSamajh editorial desk · Last reviewed: 24 August 2026 · How we check this →