A Systematic Investment Plan (SIP) is an investment strategy in which an individual invests a fixed amount of money at regular intervals (usually monthly) into a mutual fund or exchange-traded fund (ETF). It is a disciplined approach to investing that helps individuals benefit from rupee-cost averaging and compounding over time.

In a SIP, investors contribute a predetermined amount regularly, which is used to purchase units of a chosen mutual fund or ETF. This approach allows investors to buy more units when prices are low and fewer units when prices are high, potentially reducing the average cost per unit over time.

• Rupee-cost averaging: Buying more units when prices are low and fewer units when prices are high.
• Disciplined investing: Regular investments instill financial discipline.
• Compounding: Returns are reinvested, leading to potential exponential growth.
• Flexibility: Investors can start with small amounts and increase investments gradually.
• Diversification: Exposure to a variety of stocks or assets, reducing risk.

• Choose a mutual fund or ETF based on your financial goals and risk tolerance.
• Determine the amount you want to invest and the frequency (usually monthly).
• Provide the necessary documents, such as KYC details, bank account information, and identity proof, to the fund house or broker.
• Set up an auto-debit instruction from your bank account to the chosen fund.

Yes, you can change your SIP amount later. Most fund houses allow investors to increase or decrease the SIP amount as needed to align with their changing financial circumstances.

Remember that investing involves risk, and it's advisable to consult with a financial advisor before making any investment decisions.