HomeMutual FundsPlan-execute-accomplish (because SIP is as easy as taking a SIP of coffee)
Plan-execute-accomplish (because SIP is as easy as taking a SIP of coffee)
February 11, 2022
Believe it or not but now making an investment in SIP has become as easy as taking a SIP of your coffee. Want to know more about it? Let’s get a clear understanding of how it is possible and what needs to be done in order to manage your finances more accurately.
The coronavirus outbreak has created a sense of doubt among investors and the unpredictability of the market. And this is the reason why Systematic Investment Plans (SIP) have emerged as the most preferred financial product after the pandemic.
SIPs offer different alternatives for the investors to help them fulfill their financial goals, from savings to investment. In addition to the high level of convenience, SIP provides, it can also help to maintain discipline in our lives and finances.
When investing in SIP mutual funds in India, he or she does not have to take stress about sudden changes in the markets. In a scenario where an individual invests money in a financial product on his own on a regular basis, it is possible that the market movements are likely to heavily influence the investor’s ability to make good decisions.
With SIP comes the magic or the power of compounding which helps in increasing the final return by acting as an investment itself, and hence, the return an investor already generates from an investment.
SIP is a product that helps customers systematically realize investment savings. Therefore, investors invest a fixed amount each month and experts manage and allocate these funds according to specific strategies.
Main Benefits of SIP
You get the units based on the average price
SIP is a way to help avoid market volatility. For a fixed amount each month, you can buy more fund units when the price is low and fewer fund units when the price is high.
Profit from compound interest.
The longer the investment period, the more money you will save on interest.
Practice investment discipline easily with simple steps.
Participating in a SIP does not require you to place a monthly purchase order like a regular investment purchase order, you only need to transfer the funds to your account, and they will get deducted automatically on a monthly basis.
A tree needs to be fertilized in order to harvest its fruits at a later stage. Likewise, one cannot get rich overnight unless one wins a big lottery. This is where the magical power of compounding plays a crucial role. You must systematically plan and invest to accumulate wealth over a period of time.
Compounding simply refers to making a profit on your previous returns. The power of compounding is generally associated with your investment planning. The sooner you start investing your money, the more corpus you can build for your retirement.
Although it is known as magical, there is no magical mantra as such. It is only your early and disciplined approach towards investing that can help you reach a targeted corpus through the compounding factor.
To know more and start investing in SIP, contact RK Financial Services at firstname.lastname@example.org or call us at +91-7834834444 to start a new chapter of your investments.