Systematic Investment Plan

Many of us have heard so many times in Advertisement and in our circle about SIP, but we have so many questions in our mind. As most of us have learned about investment avenues like Real Estate, FD/RD & Gold. But today we will learn about a powerful investment tool, and we know that by the name - SIP.

As we all know SIP stands for Systematic Investment Plan where instead of putting money at one go, we save small amount every month, without getting any burden we can accomplish our financial goals easily. 

What is SIP ?

SIP is way to enter into equity market via much diversified way and at a regular interval depending upon our cash flows, with this we can pass over the volatility risk in equity market. When the market is on the upside, we get lesser units and when market move on downward trajectory, we get more unit which help an investor in averaging Here we don't have that obligation of putting a big amount at one go instead we can invest as per our saving capacity or financial goals which are inline.

How SIP can be a game changer ?

SIP investments help you start small, stay consistent, and watch your investments grow with some advantages:

• Mitigates Risks: Regular, smaller investments reduce the risk of putting all your money in at the wrong time.
• Affordable Entry: You don’t need a large sum to get started with SIP in share market. You can start with ₹500.

• Consistent Growth: Regular SIP investments beat trying to time the unpredictable volatility in market.

Benefits of SIP ?

SIP has many benefits for investors, such as

•  Discipline: SIP helps you develop a habit of saving and investing regularly, which can help you achieve your long-term goals.

•  Convenience: SIP is easy to kick-start and stop, and you can do it online or offline with just a few clicks or documents. 

You don’t have to worry about timing the market or tracking the performance of your investments, as SIP does it for you automatically.

•  Rupee Cost Averaging: SIP helps you reduce the impact of market fluctuations by averaging out the cost of your investments over time. 

When the market is doing well, you get fewer units of the mutual fund. But when the market is bearish, you get more units. This means you end up buying more units when prices are low and less units when prices are high. As a result, your average cost per unit becomes lower.

•  Compounding: SIP helps you grow your wealth faster by reinvesting the returns you earn from your investments. This creates a compounding effect, where you earn interest on interest, and your money multiplies over time.

•  Flexibility: SIP gives you the freedom to choose the amount, frequency, and duration of your investment, as well as the type of mutual fund you want to invest in. 

For Any Query Contact-Wealthwave Partners.