Taking the decision to do meaningful investments to get gains is one way to secure your future and also increase your standard of living. The returns received from these investments can help you fulfill your dreams and aspirations. Of all the avenues available for investments in Mutual Funds, SIP or Systematic Investment Plan is now gaining a lot of attention by investors. SIP investment is something that is not as complicated and helps even a layman to invest in it.
Why Choose SIP for Investments?
SIP or Systematic Investment Plan is a scheme which is offered by Mutual Fund companies. This scheme helps you to invest small and regularly in the mutual fund of your liking. You can invest as small as Rs. 500 periodically for a weekly, monthly, or a quarterly basis.
SIP requires you to do a careful allocation of your investments. One major advantage is that through a SIP you can monitor the performance of your Mutual Fund regularly. This can give you an idea of whether the scheme is performing well or you are going into a loss.
Here’s why you should consider investing in SIP.
- Investing in SIP helps you to have a much-disciplined approach towards your investments.
- As you have the liberty to invest small, you can choose an amount which suits you and does not put a strain on your finances.
- SIP investing does not take
- SIP helps you to make investments at an early age. You do not need to wait for a promotion or any such big leap and then start investments. Investing at an early age helps you to accumulate a significant amount of wealth in the future.
- Investing small helps you get better results than investing a lump sum.
- SIP investment helps minimize the effects of a volatile market. You can continue investing without worrying about the volatility.
- Through SIP you can average the purchase cost of your mutual funds. SIP investments can be done irrespective of the ups and down in the market. There are chances you can buy more units when the market is low and fewer units when the market is high. This forms an average of the purchase cost.
- There is no dilemma of when to invest in SIP. You can start investing any time irrespective of the market conditions.
- You can achieve your goals through SIP investments. Whether it is going on a trip, buying a car, getting your home renovated etc, periodic SIP investments can help you achieve these.
- Unlike other mutual funds where there is a maturity period, SIPs are flexible. You can stop your investments at any time.
Here’s how you can set up a Systematic Investment Plan.
- Choose the mutual fund which suits your needs and has a good track record.
- Submit the required documents and get your KYC for mutual fund done.
- Set up automated payments. The amount will get deducted directly from the account.
SIP is a simple investment solution to have a secure future and to fulfill all your dreams. SIP your way this 2019 and reap the benefits in the years to come.
Calculate your maturity amount by entering your desired SIP amount and investment horizon with Indiabulls AMC SIP Calculator.
“Mutual Fund investments are subject to market risks, read all scheme related documents carefully.”