1. What is the minimum SIP investment?

Most funds allow SIPs starting from ₹500 per month, making it accessible to all investors.

2. Can I pause my SIP?

Yes, most AMCs allow SIP pauses for 1-6 months, depending on the scheme.

3. How does compounding affect SIP?

Compounding generates earnings on previous earnings, significantly boosting long-term returns.

4. Are SIP returns guaranteed?

No, SIP returns depend on market performance. Past performance doesn’t guarantee future results.

5. What’s rupee cost averaging?

Buying more units when prices are low and fewer when high, averaging purchase costs.

6. Tax benefits on SIP?

ELSS SIPs offer tax benefits under Section 80C up to ₹1.5 lakh annually.

7. Best time to start SIP?

The best time is now – longer duration maximizes compounding benefits.

8. How to choose SIP frequency?

Monthly is most common, but weekly/quarterly options are also available.

9. Difference between SIP and lump sum?

SIP spreads investment over time, reducing market timing risk.

10. Can I withdraw SIP anytime?

Yes, but exit load (if any) applies as per scheme rules.

11. What’s XIRR in SIP?

Extended Internal Rate of Return – accounts for irregular cash flows.

12. How to track SIP performance?

Through AMC portals, MF platforms, or consolidated statements (CAS).

13. SIP vs RD returns?

SIPs have market-linked returns, RDs offer fixed but lower returns.

14. Can NRI invest in SIP?

Yes, through proper KYC and NRE/NRO accounts.

15. What’s step-up SIP?

Automatically increases investment amount annually by fixed percentage.

16. SIP risk factors?

Market risk, inflation risk, and interest rate risk.

17. Best SIP duration?

Minimum 5-7 years to ride out market volatility.

18. How to modify SIP amount?

Submit revised mandate to your AMC or through online portals.

19. SIP for retirement planning?

Ideal for long-term goals due to compounding benefits.

20. Difference between SIP and STP?

SIP invests fresh money, STP transfers between existing funds.