An SIP helps you average out the cost of your investments over a long time. When the markets are high, you buy fewer units, and when the markets are low, you buy more.
You can start an SIP for as little as Rs 100-1,000. With this small sum, you can get a completely diversified portfolio, whereas, for stocks, you need to invest a lot more.
It helps in inculcating a habit of investing, as each month, a portion of your salary is deducted from your account and invested.
It also goes well with your money cycle – you earn every month, you spend every month, and you invest every month.
An SIP helps you avoid the draining and risky habit of timing the market. Instead, you invest regardless of the market condition – high or low.
Stay regular with your SIPs, and when you get an increment at work or come across any surplus, you can step up your SIP.