A more thorough explanation:

A Systematic Investment Plan (SIP) is a type of investment plan that helps investors reach their financial goals. It is regulated under federal securities laws and is also known as a Periodic Investment Plan. SIPs are usually sold to military personnel, but civilians can also invest in them.

With a SIP, investors can accumulate shares of a mutual fund indirectly by making small regular monthly payments, usually as little as $50, over a period of 10, 15, or 25 years. However, it is important to note that individual plans can differ from one another. Some SIPs require a long-term commitment of 10 or 15 years, and they come with high upfront costs. Sales fees can be as much as half of the first year's investment, making them expensive if the full term of payment is not completed.

It is important for investors to be aware of SIP policies containing misleading claims. Additionally, investors should know that they will not own shares in a mutual fund if they invest in a SIP. Instead, they will own interest in a trust, and the trust will invest their regular payments in mutual fund shares.

For example, if an investor wants to save for their child's college education, they can invest in a SIP that will help them reach their goal over a period of 15 years. They can make small monthly payments, and the trust will invest their money in mutual fund shares. However, if the investor does not complete the full term of payment, they may not receive the full benefits of the SIP.

Investors can find more information about SIPs from the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC), and Bankrate.com. These resources provide guidance on how to protect oneself from scams and misleading claims related to SIPs.