SIPs stands for Systematic Investment Plan and it is a mere tool that helps you invest a particular amount of your salary in mutual fund schemes, which are mostly equity mutual fund schemes. After a year of managing the above 4 ways, I opened 2 SIPs. SIPs are great for maximised returns especially when you do it regularly over a period of time no matter what the market conditions are. Today I have enough invested in the market and I do not worry as much about my future. You can break a big amount into 3-4 smaller amounts and invest in different SIPs. You then get more units when the market is low and fewer when it is high. It is great for achieving long term financial goals by making small investments regularly.