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449 lessons · 1492 terms · 29 calculators

20 results for “SIP

Lessons

Glossary

  • SIP
    Market basics

    Its real benefit is behavioural: the money goes in before you can talk yourself out of it.

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  • Step-up SIP
    Market basics

    One checkbox at setup that can roughly double a twenty-year corpus. Almost nobody enables it.

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  • Standing instruction
    Market basics

    The point of automating them was to stop thinking about them, which is why they all fail together on their scheduled dates when an account freezes. Knowing which run from which account is a twenty-minute exercise you cannot do in a hurry.

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  • DII
    Market basics

    Funded by monthly SIP flows, which has made them the shock absorber against FII selling.

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  • Automation
    Risk & psychology

    An auto-debit SIP survives the frightening months you would otherwise have skipped.

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  • XIRR
    Market basics

    The only honest measure of a SIP. Your app’s absolute return is not comparable to an index’s annual return.

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  • P&L statement
    Regulation & tax

    Use this at filing time, not the app dashboard. Every SIP instalment is its own purchase.

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  • Rupee cost averaging
    Market basics

    True, and modest. The real benefit of a SIP is removing twelve decisions a year.

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  • Consistency
    Risk & psychology

    A SIP stopped during a fall removes exactly the instalments that would have bought most cheaply.

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  • Commitment device
    Risk & psychology

    An auto-debit SIP and a fixed rebalancing date need no willpower, which is why they survive decades.

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  • Pre-commitment
    Risk & psychology

    Automated SIPs, a two-week cooling-off rule, a hard position cap. It removes the need to decide well while afraid.

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  • Discretionary spending
    Market basics

    The bucket that should absorb variation. If the SIP is absorbing it instead, the structure is the wrong way round.

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Calculators

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