Have a long term investment goal…….take SIP
Scared of the market but see it as most ideal…….take SIP
Do not have a huge amount to invest in one go…….take SIP
Always end up spending all the money…….take SIP
Yes, the answer to many of your investment questions is SIP.
SIP plans are not only a stepping stone for a bigger and brighter future but also a disciplined approach of creating a sustainable investment habit and create a pool in long. SIP plans are not only the most talked about unique option available in the market today, but they are also most flexible and lend multiple advantages in many prospects.
Equity fluctuations – we are all aware of how volatile equity market is and how people keep losing money when they fail to keep a very close watch, which is difficult to do at all times. Mutual funds also invest in the market, but SIP takes care of that fluctuation. In a sense, it averages out change the by procuring more units when NAV is low and lesser when NAV is higher of your fund, each month with each infusion of yours.
Benefit of compounding – Yes, it is what our teachers taught us in school, you get an interest on the interest earned along with interest on the principal amount. The longer you stay invested, the more gets multiplied, and you garner more returns.
Investment diversification – SIP gives you the advantage of categorizing and lets you bet your hard earned money in different asset classes. Most seasoned investors and experts advice spreading investment and diversifying in different sectors including banks, steel, etc.
Habit of Saving – Pledging a certain amount every month teaches you a discipline of saving and investing. Now that there is a fixed amount pledged (of course you can stop or pause if a situation arises), you tend to set aside the fixed amount and eventually increase (that is observed generally).
It is for everyone – SIP Plans gives enough flexibility to decide the amount of your investment, set the date of preference, number of months or years you wish to stay invested, frequency of investment. One can start with as low as 100 rupees per month, and you can also pause and cancel at any point you wish to. There also is an option of putting money in tax saving SIP Plans, which usually have a minimum of three years lock-in period.
Option of choosing variants – SIP is an amazing investment tool not only for different pockets but also accommodates different phases of investors. With variants like Flexi- SIP and Set –Up SIP plans give you the option to increase your investment as your income grows or as you decide to save more and vice versa you can choose to decreases upto minimum required amount if wish to anytime in future.
Wait no more… Start one today, it is a fantastic tool to create wealth or to create a corpus for your future dreams without pinching too hard on your present days.