A Systematic Investment Plan (SIP) is a method of investing in mutual funds where an individual invests a fixed amount of money at regular intervals, such as monthly or quarterly. This approach allows investors to build wealth over time while benefiting from the power of compounding. SIPs help in averaging the cost of investment, as the same amount buys more units when prices are low and fewer units when prices are high. SIPs are suitable for both beginners and experienced investors, as they promote disciplined saving and reduce the impact of market volatility. By committing to a regular investment schedule, individuals can work towards their financial goals, such as retirement or education, without the stress of timing the market.