[1] In SIPs, a fixed amount of money is debited by the investors in bank accounts periodically and invested in a specified mutual fund.
Every time a sum is invested, more units are added to the investor's account.
[1] The strategy claims to free the investors from speculating in volatile markets by dollar cost averaging as the investor is getting more units when the price is low and fewer units when the price is high.
In the long run, the average cost per unit is supposed to be lower.
SIP is usually recommended to retail investors who do not have the resources to pursue active investment.