A Systematic Investment Plan (SIP) is a method of investing where you invest a fixed amount of money into a mutual fund or stock at regular intervals (e.g., monthly or quarterly). SIPs promote financial discipline and take advantage of dollar-cost averaging, helping to smooth out purchase costs over time. They are particularly effective for long-term investors as they can help mitigate market volatility and compound returns. SIPs offer a convenient and accessible way to build wealth over time.