A Systematic Investment Plan (SIP) is a method of investing in mutual funds where a fixed sum of money is invested at regular intervals (usually monthly), rather than making a one-time lump-sum payment.

No, mutual fund investments are subject to market risks, and returns are not guaranteed. However, historical performance shows that long-term equity mutual fund investments tend to offer competitive compounding returns over 5 to 10+ year horizons.

The maturity value is calculated using the formula: FV = P × [((1 + i)^n - 1) / i] × (1 + i), where P is the monthly investment amount, i is the periodic interest rate (annual return rate divided by 12), and n is the total number of months (tenure years × 12).