Systematic Investment Plan (SIP) allows mutual fund investors to invest the pre-set amount in mutual funds at periodic intervals, which can be monthly, quarterly, etc. As the SIP amount is debited automatically from one’s savings account, it ensures regular investment and also instils financial discipline. Moreover, when routing your mutual fund investments through SIPs, the minimum investment size can be as low as Rs 500 for ELSS fund and Rs 1,000 for other equity funds. Thus, SIPs enable those with irregular income to begin investing in MF with small amounts without having to wait for accumulating bigger amounts for investment. Just by investing limited investible surplus, one cannot just avail diversification in their equity mutual fund investments but also simultaneously make most from the power of compounding.