Investing Guide #57: What is a SIP & Why It’s the Best Way to Start Investing

 

Scared of Investing? Start With SIP — The Safest Path for New Investors

SIP = Systematic Investment Plan. It’s the safest, smartest, and most flexible way to invest in mutual funds — even if you’ve never invested before.

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📘 What is SIP?

Instead of investing ₹60,000 at once — you invest ₹5,000/month over a year.
This spreads your cost, reduces risk, and builds habit.

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📈 Why SIP Works for Beginners

• No timing needed — works in up and down markets
• Disciplined investing — builds habit
• Rupee cost averaging — more units when market is low

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💸 Start With As Low As ₹100/month

Yes, you can start small — apps like Groww, Paytm Money, Zerodha Coin support low-ticket SIPs.

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📊 Ideal SIP Duration

• Minimum: 3 years
• Ideal: 5–10 years for major wealth building
• Longer = better compounding

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✅ Conclusion

Don’t wait to invest big. Start with what you have — ₹500, ₹1,000 — and let time grow it for you. SIP is the beginner’s best friend.

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