New Delhi, July 24 -- The Systematic Investment Plan (SIP) habit has made equity investing automatic for crores of Indians. Now, platforms are extending this feature to debt funds, government securities, and direct corporate bonds. However, running a SIP in fixed income works on a fundamentally different principle than running one in stocks.

Equity SIP ───> Exploits Volatility ───> Rupee-Cost Averaging

Bond SIP ───> Dampens Timing Risk ───> Yield-Laddering Across Cycles

Key takeaway: If interest rates fall, your earlier bond instalments secure higher yields; if rates rise, your later instalments capture higher returns. It removes the pressure of trying to time the ...