A SIP or Systematic Investment Plan helps you pay a fixed amount to a mutual fund scheme at regular intervals.

Investment in mutual funds can happen in two ways – the lump sum method and SIP. In the case of the lump sum method, investors pay a large sum upfront and purchase units of mutual funds in one go. 

On the other hand, SIP involves regular payments at fixed time intervals. The biggest advantage of investment via SIP is that one does not need to time his/her investment.