Question 1

What is a Systematic Investment Plan (SIP)?

Accepted Answer

An SIP is an investment route offered by mutual funds where one can invest a fixed amount regularly (e.g. monthly) rather than making a lump-sum contribution.

Question 2

What is the formula for calculating SIP future value?

Accepted Answer

The SIP compound wealth formula is: FV = P * [ ((1 + i)^n - 1) / i ] * (1 + i), where FV is the future value, P is the monthly payment, i is the periodic interest rate (annual yield / 12 / 100), and n is the total number of months.