SIPs are a way to invest in mutual funds where investors don’t purchase units all at once with a single lump sum payment. Instead, they make investments over time by making small, regular payments. This allows them to allocate a manageable portion of their income systematically. Moreover, it averages out the total cost of the units bought for the scheme and increases returns. Small investors find SIPs convenient because of their flexibility and low minimum investment amount. Let us see this in detail.