Question 1

What is SIP?

Accepted Answer

SIP (Systematic Investment Plan) is a method of investing a fixed amount in mutual funds at regular intervals.

Question 2

How is SIP return calculated?

Accepted Answer

SIP future value = M × [((1+r)^n - 1) / r] × (1+r), where M is monthly investment, r is monthly return rate, n is number of months.

Question 3

Is SIP better than lumpsum?

Accepted Answer

SIP reduces timing risk through rupee cost averaging. Lumpsum is better when markets are low. Most retail investors benefit from SIP.

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