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Mutual Funds & SIPMay 10, 2017•2 min read

SIPs and Monthly Allocation

Setting up monthly SIPs works like clockwork toward long-term goals — but it helps to understand what's actually happening behind the mechanism.

Portrait of Tejas Shah

Tejas Shah

Proprietor of Silicon One and Silicon Systems, AMFI-registered Mutual Fund Distributor since 2004, based in Vadodara.

For someone new to systematic investment plans, SIPs can seem like a distinct investment in themselves. Ask a newbie where they're investing, and they may say "in SIPs" — but SIPs aren't investments on their own, just a systematic way of allocating a fixed amount monthly toward chosen mutual fund schemes.

Understanding the SIP as a mechanism, rather than a product, helps investors focus on what actually matters — picking the right underlying funds for their goals.

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