A Systematic Investment Plan (SIP) allows investors to invest a fixed amount in mutual funds at regular intervals (e.g., monthly). SIP investments help build financial discipline, lower the impact of market volatility through rupee cost averaging, and support long-term wealth creation through compounding. Many investors prefer SIPs because they can start with small monthly contributions, even from ₹500, and then raise the amount later as their earning capacity improves.

However, investors should not start an SIP without proper evaluation. A wrong fund choice or unrealistic investment approach may affect financial goals. To help investors invest wisely, this article explains six things to verify before starting an SIP investment.