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SIP stands for Systematic Investment Plans.
A SIP is a mode of investing in Mutual Funds. It allows you to invest a fixed sum of money on a predetermined date regularly in the Mutual Fund scheme of your choice. When you start a SIP, you allow the fund house to automatically deduct your SIP amount from your bank account and invest in the chosen fund at the chosen date. You can start a SIP with as low as Rs 500. SIPs are not only light on the pocket but also help you become financially disciplined through regular saving and investing. Moreover, SIPs also offer the advantage of rupee cost averaging. This means you can buy more units when the prices are low and fewer units when the prices are high. You can, thus, average out your cost of investment over a period, considering or on the basis of capital market fluctuations.