Systematic investment plan
A systematic investment plan (SIP) is an investment vehicle offered by many mutual funds to investors, allowing them to invest small amounts periodically instead of lump sums. The frequency of investment is monthly, quarterly, semi-annually and annually. Overview
In SIPs, a fixed amount of money is debited by the investors in bank accounts periodically and invested in a specified mutual fund. The investor is allocated several units according to the current Net asset value. Every time a sum is invested, more units are added to the investor's account. The strategy claims to free the investors from speculating in volatile markets by dollar cost averaging as the investor is getting more units when the price is low and fewer units when the price is high. In the long run, the average cost per unit is supposed to be lower. SIP claims to encourage disciplined investment. SIPs are flexible; the investors may stop investing in a plan anytime or may choose to increase or decrease the investment amount. SIP is usually recommended to retail investors who do not have the resources to pursue active investment. Benefits of SIP 
The benefits of Systematic Investment Plans (SIPs) include:

  Cost averaging: SIPs allow investors to invest a fixed amount regularly, regardless of market conditions. This strategy helps buy more units when prices are low and fewer when prices are high, potentially reducing the average cost per unit over the long run. Disciplined investing: SIPs encourage disciplined investing by automating regular investments. Investors commit to investing a fixed amount regularly, promoting a consistent savings habit. Flexibility: SIPs all around the world offers flexibility to investors. They can start with a small investment amount and gradually increase it over time. Additionally, investors can pause, modify, or stop the SIP anytime, depending on their financial goals and circumstances. Diversification: SIPs allow investors to diversify their portfolios by investing in various mutual funds across asset classes or sectors. This diversification helps in spreading the risk and potentially enhancing returns. Accessibility: SIPs are accessible to retail investors who may not have significant resources to pursue active investment strategies. With a low minimum investment requirement, SIPs enable individuals to participate in the financial markets and benefit from long-term wealth creation. Professional management: SIPs invest in mutual funds, which professional fund managers manage. These managers conduct extensive research and analysis to make investment decisions on behalf of investors, potentially providing access to expert investment strategies. Dividend Re-Investment Plan (DRIP) 
Dividend Reinvestment Plan or DRIP enable shareholders to reinvest the dividends they receive from a company back into the company's stock rather than receiving the dividends in cash. The reinvested dividends in a DRIP can contribute to the compounding of returns over the long term. As additional shares are acquired through reinvestment, future dividends can be earned on a larger overall investment base, potentially leading to accelerated growth. Also, DRIPs are typically voluntary, allowing shareholders to choose whether or not they want to participate. Investors can opt into or out of the plan based on their investment preferences and goals. SIP in Nepal 
Nepal currently has 7 active Open Ended Mutual Funds, of which NIBL Sahabhagita Fund was the first SIP in Nepal which currently has a total of 62,436 investors. List of SIPs in Nepal

 NIBL Sahabhagita Fund
  Siddhartha Systematic Investment Scheme
 NMB Saral Bachar Fund-E
 NIC Asia Dynamic Debt Fund
 Shubha Laxmi Kosh
 Nabil Flexi Cap Fund
 Kumari Sunaulo Lagani Yojana

The above list is as of 26th May 2023. | Source: sharesansar

See also
 Recurring deposit
 Dollar cost averaging

References 

Investment funds