SIP
What is SIP ?
Everything You Want To Know
Systematic Investment Plans or SIPs are one of the most popular ways of investing in Mutual Funds. SIPs help inculcate financial discipline and build wealth for the future. With SIPs, you can start small and gradually build a corpus in a systematic and planned manner.
A SIP is a systematic approach to investing and involves allocating a small pre-determined amount of money for investment in the market at regular intervals (usually every month)
The SIP route is the preferred way of investing in stocks and Mutual Funds because it allows you to participate in the market while managing risk better.
Benefits of SIP
What are the benefits of SIP?
Rupee Cost Averaging : While the term might sound like something out of a math textbook, its role is quite important. Rupee cost averaging helps minimise the risk of market volatility. Which means, when the market is affected, your overall investment is protected in the best way possible
Ease of investing : A SIP is hands down one of the easiest modes of investing in mutual funds. All you have to do is instruct your bank to initiate auto-debits from your account.
Power of Compounding : Even a small investment via a SIP can grow into a sizable amount with the power of compounding. So, the interest earned on your investment earns more interest over the years, allowing you to accumulate a considerable amount for your financial goals.
Start Simple : The beauty of a SIP is that you don't need to invest big. You can start small and gradually increase your investment as per your convenience.
Discipline : Saving is not an easy task. Unexpected expenses pop up and then people end up saying "next time". By investing via SIP, you commit to saving regularly. This way, you can achieve your financial goals without deviating.
