What is an SIP?
A Systematic Investment Plan or SIP is a smart and hassle-free mode for investing money in mutual funds. SIP allows you to invest a certain predetermined amount at a regular interval (weekly, monthly, quarterly, etc.).
A SIP is a planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future.
Every time you invest money, additional units of the scheme are purchased at the market rate and added to your account. Hence, units are bought at different rates and investors benefit from Rupee-Cost Averaging and the Power of Compounding.
Refer to this post on TradingQ&A to learn more.