A SIP (Systematic Investment Plan) is when you invest a fixed amount in a mutual fund at regular intervals—usually monthly. Instead of timing the market, you invest consistently and benefit from rupee-cost averaging.

Why SIP Works for FIRE

• Discipline — Automatic deduction builds the habit of investing
• Rupee-cost averaging — You buy more units when prices are low, fewer when high
• No timing needed — Start anytime; consistency matters more than perfect entry
• Small amounts — Begin with ₹500–1000/month in index funds

SIP vs Lump Sum

Both work. SIP reduces the risk of investing a large sum at a market peak. Lump sum historically wins more often (markets tend to rise over time), but SIP is psychologically easier and fits monthly salary flows. For most FIRE investors, SIP in index funds is the default approach.