SIPs (Systematic Investment Plans) allow investors to invest fixed amounts periodically in mutual funds. SIPs promote financial discipline, benefit from rupee cost averaging, and compound returns over time. Even small monthly investments can grow into substantial wealth due to the power of compounding. SIPs are ideal for salaried individuals who prefer regular investing without timing the market. On the other hand, index investing refers to investing in mutual funds or ETFs that track a specific market index like Nifty 50 or Sensex. Index investing is a passive investment strategy, typically offering lower costs and consistent returns. Since it mirrors the performance of an index, there’s less risk of underperformance due to poor fund management. Combining SIPs with index investing is a simple and effective way to build long-term wealth. This approach suits investors looking for low-maintenance, low-cost, and market-beating returns over the long run.