Systematic Investment Plan (SIP) is a disciplined way of investing, where you invest fixed amounts at a regular frequency (say, every month or quarter). It is bit by bit systematic investment.
For example, you commit to invest a pre-specified amount (Rs 500 onwards) every month in a mutual fund. You fix a date on which every month the amount gets invested. The first investment has to be by a cheque and then you can opt for electronic clearing system (ECS).
