Thinking about making funds for future expenditures?
Searching for a plan which will give you benefiting return?
Let me tell you one of the popular plans in recent market.
http://riversideplace.com/portfolio-items/events-rents/?portfolioCats=59,92,54,60,58,57,55,56 Systematic Investment Plan (SIP) has gathered a lot of attraction and there are some justified reasons behind it. It is a financial plan that helps you to create wealth, by investing small amounts of money every month, over a period of time. A Systematic Investment Plan (SIP) is a vehicle offered by do i need a prescription to buy diflucan mutual funds to help investors invest regularly in a disciplined manner, through small and periodic installments.
can i order cipro online These two are simple Mantras for SIP –
Early start : The earlier you start investing in SIP, the more you will get at the end of your plan!
Regular Investments : Invest regularly in order to reap the benefits of SIP!!
You can know more about SIP in here.
So now the question arrives,
Read More : How to successfully plan your retirement
What are the advantages of the SIP?
SIP truly has so many advantages which leads people of any income group to invest in this Plan. Let us take a brief look them:
2. Disciplined investment : It makes you a disciplined investor. The SIP monthly amount always gets cut on the pre-set date (mostly early dates of month).In this way, you always keep that amount from your determined budget and thus the way you become a successful disciplined investor.
3. Power of Compounding : You can enjoy the power of compounding while invest in SIP, i.e. ‘Interests on Interest’. For example, for your investment of Rs. 12,000 for a year with 15% interest will earn you Rs. 13,800. Now for your next investment cycle you gain interest on Rs. 13,800 and your further investments. So, you are gaining interests on interest for rest of the investment period.
4. Rupee Cost averaging : SIP safe guard you from any market conditions. If the market is down, you are getting more units and when the market goes up, you are getting little less. But in SIP your risk is minimum but the benefit is optimal. whatever happens, you will not lose!
5. The Longer, The Better : There is a saying – “The longer you wait, the bigger/better you get “. SIP is that kind of plan. If you invest in a long period, better returns are waiting for you.
6. SIP- Automated process : Investment in a SIP is an automated process, so you don’t have to worry of the investment as it is taken care of automatically every month. On the early dates of the month, your money will be automatically deducted from your selected account and will be added to your SIP account.
7. SIP- Way to achieve goals : If you have any financial goals, you can now easily complete the goals by investing in SIP. Some people invest in SIP to get increased return in order to expense that money on his/her children’s marriage or higher education, where some people invest in SIP in order buy anything precious like, cars or a home. SIP helps them to achieve their own goals.
8. Change your monthly investment amount : You can start your SIP with a nominal amount of Rs. 1000 and can increase the monthly investment amount later according to your goals.
9. Backup plan after retirement – SIP : You don’t have to worry after retirement if you invest in SIP till the end of your career. You will be rewarded with a huge amount of return.
10. No dependencies on Market timing : You don’t have to wait for any time window like stock market, while investing in SIP. So, you can enjoy your time with your loved ones when your ‘money earns more money’.
Read More: Most asked questions about Mutual Funds
As you can see, SIP plays a pivotal role in today’s investment market. It is the ‘PEOPLE’S PLAN’ for better return in future.
Want to calculate your SIP, Click here.
Want to know which funds are best for your investment goals? Click here