GreenFunds Education, not financial advice India
Lesson 5 of 10 · 4 min

SIP and mutual funds

Investing on autopilot

A mutual fund is a shared basket. Many people put money in, and a professional manager invests it together across many companies. Your ₹500 joins thousands of others, so even a small amount gets spread across a lot of shares.

An SIP, or Systematic Investment Plan, is simply the habit of putting a fixed amount into that basket every month, automatically.

The rupee example. You set up an SIP of ₹2,000 on the 5th of every month. It happens on its own, whether the market is up or down. When prices are low your ₹2,000 buys more units, when high it buys fewer. Over years this smooths out the ups and downs, so you do not have to guess the right time to invest.

Start small, keep it automatic, and let time and compounding work. Always check what a fund holds and what it charges before you pick one.

This is general education, not financial advice.

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