SIP encourages regular and disciplined investing by allowing investors to contribute a fixed amount at regular intervals. This helps in avoiding the temptation to time the market.

o SIPs allow investors to start investing with a relatively small amount of money. This makes it accessible to a broad range of investors, including those with limited funds.

o SIP follows the principle of rupee cost averaging. Since the investor is buying a fixed amount of units at regular intervals, more units are purchased when prices are lower and fewer units when prices are higher. Over time, this can result in a lower average cost per unit.

Compounding is a powerful concept in investing. By investing regularly over the long term, investors can benefit from the compounding of returns on their invested capital.

Investors can choose the amount they want to invest in SIPs, and they have the flexibility to increase, decrease, or stop their contributions based on their financial goals and market conditions.

The predetermined investment amount is automatically deducted from the investor's bank account and invested in the chosen mutual fund.

SIPs are designed for long-term wealth creation. By staying invested over an extended period, investors can potentially benefit from the power of compounding and market growth.