This is a simple strategy for accumulating wealth over a period by investing regularly at a fixed interval of time in mutual fund schemes, this is similar to the concept of recurring deposits scheme, but this being in equity comes with a relatively higher risk and higher return than the recurring deposits.
What is Systematic Investment Plan?
An investor commits to invest a specific amount for a continuous period at regular intervals, this ensures that he gets more units when prices are low and fewer units when prices are high. This works on the principle of rupee cost averaging when invested at different levels and automatically participate in the swings of the market.