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.
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.
The Systematic Investment Plan (SIP), a method of investing allowed by mutual funds, allows one to make periodic fixed-amount investments in a particular equity or debt-oriented scheme.