Written by the Bini team · Last updated: October 2026
SIP stands for Systematic Investment Plan. It lets you invest a fixed amount into a mutual fund every month on a specific date. Each payment buys units at that day's price, so your units build up over time without you timing the market.
How does a SIP work?
Say you set up a SIP of ৳ 5,000 a month. Each month, ৳ 5,000 goes into the fund and buys units at the NAV that applies on that date.
- When the NAV is low, your ৳ 5,000 buys more units.
- When the NAV is high, it buys fewer units.
Over time, your cost per unit becomes an average of the prices you paid.
A four-month example
| Month | Amount invested | NAV | Units bought |
|---|---|---|---|
| 1 | ৳ 5,000 | ৳ 10.00 | 500 |
| 2 | ৳ 5,000 | ৳ 8.00 | 625 |
| 3 | ৳ 5,000 | ৳ 12.50 | 400 |
| 4 | ৳ 5,000 | ৳ 10.00 | 500 |
| Total | ৳ 20,000 | 2,025 |
Look at what happened. The NAV ended exactly where it started, at ৳ 10. But you own 2,025 units, worth ৳ 20,250 at a NAV of ৳ 10. Your average cost per unit was about ৳ 9.88, because you bought more units when the price dipped.
That is the idea behind SIP. It doesn't guarantee a gain. It just means you aren't putting everything in at a single price.
Why do people choose SIP?
- It builds a habit. The investment happens on schedule, so you don't have to decide each month.
- It spreads out your entry price. You don't bet everything on one day.
- Taka cost averaging. You buy more units when the NAV is low and fewer when it is high so your average cost per unit evens out over time.
- It fits a salary. You invest from income as it arrives instead of waiting to save a large sum.
- It starts small. Some funds in Bangladesh allow SIPs from ৳ 1,000 a month.
What SIP does not do
A SIP doesn't promise profit and doesn't remove market risk. If the fund keeps falling for years, your SIP units lose value too. The fund you choose matters just as much as the method.
Is SIP right for beginners?
Yes. For people with a monthly income it is the simplest and most appropriate way to start.
Frequently asked questions
What does SIP stand for?
Systematic Investment Plan.
Can I start a SIP with ৳ 1,000?
Yes, on EDGE, Ekush and CWT funds. VIPB and Midland funds start at ৳ 2,000 a month. Figures are as of October 2026, so check the fund page for the latest.
Is SIP better than a lump sum?
Not always. It depends on your cash flow and how the market moves. See our SIP vs lump sum guide.
Can I stop a SIP anytime?
Yes.
Does SIP guarantee returns?
No. SIP is a way of investing, not a guarantee.