SIP is Systematic Investment Plan. Here what the investor does is fix a certain amount of money that will be invested at a specified date as per the investor's instruction. The best advantage of an SIP is that it promotes disciplined way of investing to investors, because there is a periodic investment and the investor tends to focus more on the goals.
The biggest advantage that I have seen in an SIP is there is no need to time the markets. Why I am saying this is that during a bull run the investor will acquire lesser number of units, but when the markets are in a downturn the number of units will increase. So there is no headache of timing markets. Right time to invest in an SIP; I think the investor needs to start as early as possible, for instance, if a person just starts working he can keep a part of his savings and invest that through an SIP into a mutual fund and even fix a goal like maybe buying a house 10 years from now. So as early as possible is what I would say for an SIP investment.
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