New Delhi, July 30 -- By allowing investors to set aside a fixed sum at regular intervals, systematic investment plans (SIPs) ease the burden of making a large lump-sum investment while encouraging the discipline of saving first and spending later.

Owing to their popularity, SIPs have entered everyday financial vocabulary. So much so that fintech platforms such as IndiaBonds, Grip Invest and Wint Wealth now advertise "bond SIPs" to encourage investors to buy bonds.

But is this really an SIP, or simply staggered investing? The distinction matters because it determines how investors should use this convenience to their advantage.

In an equity or debt mutual fund SIP, even Rs.100 buys you a slice of a professionally managed portfolio of s...