SIP, mutual funds & ELSS explained

A SIP invests a fixed amount at regular intervals. Rupee-cost averaging means you buy more units when prices are lower and fewer when higher, which spreads purchase cost over time.

Index funds track a market benchmark rather than selecting stocks actively. Their costs are often lower, but they still carry market risk and their value can fall as well as rise.

ELSS is an equity mutual fund category that qualifies for deduction under Section 80C in the old tax regime, with a three-year lock-in. Tax rules change, so confirm current terms before deciding.