What is SIP? Build Your Wealth Through SIP:
Many investors now take the SIP (Systematic Investment Plan) route to start their savings and cash in of compounding returns during the best way. SIP is taken into account because of the most convenient way of investing within the equity markets. Financial Advisors suggest investors choose it. SIPs are generally advised to take a position on who looks to invest a particular sum of cash in mutual funds at regular intervals to create a corpus for meeting any future financial goals.
SIP allows investors to settle on the mode of investment as per their convenience- monthly, quarterly, or annually, for investing in funds of their choice. Investors can choose between various investment vehicles to take a position their money including stocks, mutual funds, ETFs, etc.
SIP brings a few disciplines in terms of investment habits. It helps the investor in maintaining a focused and dedicated approach towards investment. Starting with an amount as low as Rs.500-Rs.1000 per month, SIP offers various benefits that make an investment quite a comfortable and enjoyable experience.
Why Invest Via SIP?
As said above, SIPs are the simplest thanks to building a corpus, here allow us to glance at why one must do so:
It is light on your wallet. Since you’ll begin with an amount as low as Rs.500, you’ll easily manage your investments and other expenses efficiently
There is no much effort. A certain amount gets auto-debited from your account and invested into a selected open-end fund scheme
The investment remains an equivalent only the amount of units bought/sold fluctuates as per prevailing market conditions
More number units are often purchased during a declining market and fewer units during a rising market
Once an investor opts for the SIP option, he/she automatically participate within the market swings
SIP has been proved to be the foremost ideal way of investing for retail investors who don’t have the resources to pursue active investments