Many investors think SIP is a product; it is not uncommon to come across a query.
The popularity of SIPs or Systematic Investment Plan has gone up in the last few years. SIP is great tool to plan for long term goals like kid’s higher education and marriage, retirement etc.
An SIP helps you to stagger your investments in equity mutual fund Schemes over a period. Also, it is a convenient tool for salaried investors to regularly invest in mutual funds.
Systematic Investment Plan is a smart financial planning tool that helps you build wealth, step by step, over a period of time. The disciplined approach helps you to hedge the investments against inflation and benefit from the power of compounding and rupee-cost averaging.
Why Choose SIP
- Better than Bank Deposits: In comparison to recurring deposits offered by bank it’s always better to go for a mutual fund SIP. The nature of installment payment is same but gain in case of the later one is much more, especially where the investment span is more than three year.
- Disciplined approach to goals: Through disciplined, regular investments you can stop worrying about when and how much to invest. In a way, it eliminates the need to actively tracking the market. And SIP helps you to achieve your goals in a more simple and disciplined approach.
- Rupee cost averaging: SIPs minimize the risk associated with the volatility of the markets, as over a period of time they average out the buying cost of your investments. Many times investors miss out making investments as they fear about the entry and exit time in the market.
- Power of Compounding: Even if today you do not have huge lump sum to invest you can always start with an SIP and due to the effect of compounding over the years help in the process of wealth creation. And investments made today will grow into large corpus eventually due to the magic of compounding. indesign download crack
- Tax Saving Investments: Mutual Fund SIP can also be beneficial to investors in saving tax as well as generating returns. Investment made in Tax Saving Mutual Funds(ELSS) schemes can save yearly tax of Rs. 150000 under sec 80 C with disciplined approach along with rupee cost averaging. driver booster 9.1 lisans kodu
