Ways to invest and withdraw
What is SIP?
A SIP invests a fixed amount in a mutual fund scheme at regular intervals, usually monthly, through an automatic debit from your bank account.
How it works
Each instalment buys units at that day's NAV, so you buy more units when prices are low and fewer when they are high. Many schemes accept SIPs from ₹500 a month or less, and you can pause, change or stop a SIP.
A SIP turns investing into a habit tied to your salary, and takes the guesswork out of timing the market.
Example
₹10,000 a month for 20 years, growing at 12% a year, would become about ₹91.99 lakh on ₹24 lakh invested. At 8% a year it would be about ₹57 lakh. Returns are not guaranteed.
SIP calculator
Instalments at the start of each month, compounded monthly.
An illustration with the numbers you enter, not a forecast. Returns from mutual funds are not guaranteed.
Keep in mind
- Measure a SIP's return with XIRR.
- Stopping a SIP in a fall means missing the cheapest units.
Questions people ask
Can I stop a SIP any time?
Yes. There is no penalty for stopping, though exit loads may apply if you redeem units early.
Is a SIP better than a lump sum?
When markets rise steadily a lump sum invested early does better; a SIP spreads the risk of investing just before a fall.
Related terms
General information for education, not investment advice or a recommendation of any scheme. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future. Last reviewed 25 October 2026.