Enable investment of a fixed sum at periodical intervals for a fixed term in a chosen scheme. This can be automated by either giving post dated cheques to the mutual fund house or standing instructions to your bank.
Using SIP, investment can be made over a period of time to build a corpus...
Further you are able to lower the average purchase price over time.
An illustration to explain the concept of Rupee-Cost Averaging
|Date||Amount invested (`)||NAV (Rs)||Units purchased|
|Average purchase price||Rs. 13.1335|