SIP is a great way to invest to grow your assets slowly and easily. If you are an investor with a small but steady amount of money available for investment, SIPs may be a more suitable investment option. You can start a monthly SIP with investment as low as Rs. 500/- per month.
Is it good to start SIP now?
Obviously, the top of the market is a better time to start a SIP because you know that with each lower level of the market you will accumulate units at lower levels. By the time the market ends the fall, you would have managed to build up your SIP to attractive levels.
SIP allows you to systematically invest money so that you can build a corpus over a period of time. The systematic investment plan or SIP is a regular investment of small amounts for an extended period. It’s good for newbies.
SIP works on the POWER OF COMPUNDING.When you consistently invest for a long period of time, the interest earned is reinvested and you earn returns on the collective amount. This is known as Compounding Effect.
If you are struggling to find a lump sum investment in any kind of investment plan, you can invest a small, fixed amount of money each month via SIP. This is the most common way to invest in mutual funds in India online.
Making regular monthly investments allows you to create wealth over a period of time and meet your financial goals. SIP investments in best-performing mutual funds can be made online or through applications, like Sanjhi Poonji.
During uptrends, the mode of investing in mutual funds tends to yield relatively higher returns, while during bear markets, investments made through a SIP generally offer better returns.
SIP investments in mutual funds are ideal for everyone, majorly if you are looking for long-term goals like education for your children, financially safe future for your family and all. They are ideal for building wealth and achieving goals.
One important takeaway from SIP is that the power of layout is working in your favor. The longer you invest, the more wealth you create. In fact, more than SIP rates and quantity, it is the time factor that works best to multiply your money.
Systematic Investment Plan (SIP), the name itself contains an emphasis on discipline. If you want to be successful in everything you need, you need to focus and, above all, there MUST be a plan. SIP helps implement this plan, although it is not rigid.
If you are looking for the best investment opportunity and you don’t have time to focus on it, then SIP is the solution you need.
Example: Suppose you read the newspaper every day in the morning. You can either go to the store and buy it, or you can ask the agent to leave it at home. Most prefer the latter as it is easy and you can save time. SIP provides this convenience to the investors.
In the case of Online Mutual Fund Investment, the professionals will be running the SIP and we all have some confidence that they will stay focused and help us get the best returns on our savings. What’s more, it’s also their bread and butter, and it’s more like a group of people working 8 hours a day to manage your fund. It’s much better than managing it yourself.