A mutual fund is a particular kind of investment vehicle where the fund is run by a professional investment manager who gathers money from investors and allocates it towards stocks, bonds, or other securities to generate capital appreciation to create wealth.
SIP refers to Systematic Investment Plan, which is a form of investment strategy that enables investors to invest a specified amount of money in a mutual fund scheme at regular intervals, typically on a monthly basis.
A Systematic Investment Plan (SIP), commonly referred to as SIP, is a service provided by mutual funds to subscribers that allows them to make regular investments.
Mutual funds are the most popular long-term investment vehicle since they provide not only liquidity but also dividends, diversification, expert administration, flexibility to invest in tiny portions, lower cost, lower tax on gains, tax benefits, and so on.
Mutual funds have a track record of being long-term investments where investors pool their funds and invest through fund managers in stocks, bonds, and other securities.