SIP is a safe way to invest in mutual funds. If you invest a lump sum in a mutual fund, depending on the market condition, you could end up paying a very high price for a mutual fund. This can be avoided by investing in mutual funds only when the market is not overvalued. This requires knowledge of the markets. Timing the market is a term. SIP investing is easy and you don’t have to worry about timing. SIP allows you to invest a small amount each month. The price may be high in certain months while it will be low in others. The long-term price you pay for mutual funds will fluctuate between high and low. If you invest via SIP, you won’t pay a high price or an overvalued mutual. This is known as rupee cost averaging.