The secret sauce of SIPs

Today SIPs don't require an introduction. They have become a powerful tool to invest in equity. In August 2018, the monthly SIP flows crossed Rs 7,500 crore. What has caused this rise in popularity of SIPs? The beauty and appeal of SIPs lies in their straightforwardness. You invest a fixed sum regularly in an equity fund, regardless of market conditions. In the long term, you benefit not just from compounding but also rupee-cost averaging - you end up buying more units when markets are down and fewer when markets are up. Thus, your average

This article was originally published on June 11, 2021.