A Systematic Investment Plan (SIP) allows you to invest a small, fixed amount in mutual funds every month instead of making a large one-time investment.
Rupee Cost Averaging
When you invest the same amount every month, you automatically buy more mutual fund units when prices are low and fewer units when prices are high. This averages out market volatility over the long run.
Projecting SIP Growth
To estimate your SIP value, we use the formula:
FV = P * [((1 + i)^n - 1) / i] * (1 + i)
- FV is the future value of your portfolio.
- P is the monthly contribution.
- i is the monthly interest rate.
- n is the total number of months.