What is SIP (Systematic Investment Plan)?
SIP allows investors to invest a fixed amount regularly (monthly/weekly) into mutual funds or stocks — leveraging rupee cost averaging to reduce timing risk.
Formula
SIP Return = XIRR of all periodic investments and current portfolio value
How to Interpret
SIPs remove the need to time the market. During dips, your fixed amount buys more units, lowering your average cost over time.
Typical Ranges
Monthly SIPs for 5+ years in equity funds have historically delivered 12-15% XIRR in India.