Portfolio
What is SIP (Systematic Investment Plan)?
SIP is the Indian term for a Systematic Investment Plan, a fixed amount invested regularly (monthly/weekly) into mutual funds or stocks. The US equivalent is Dollar-Cost Averaging (DCA) or recurring auto-invest in a brokerage / 401(k) / IRA.
Formula
SIP Return = XIRR of all periodic investments and current portfolio value
How to Interpret
SIPs (or US-style DCA) remove the need to time the market. During dips, your fixed amount buys more units, lowering your average cost over time. Note: 'SIP' is Indian terminology - US investors will recognise the same idea as Dollar-Cost Averaging or 401(k)/IRA auto-contributions.
Typical Ranges
Monthly SIPs for 5+ years in Indian equity funds have historically delivered 12–15% XIRR. US equivalent: monthly DCA into S&P 500 index funds has delivered ~9–10% long-term.