What Is SIP ?
Systematic investment Plan (SIP) is a very easy & convenient molde of making investments n mutual funds on a regular basic, SIP allows one to cultivate a habit of savings & creating wealth for the future by starting early. Offering ease & flexibility, through SIP one can create a planned approach towards investing right. SIP gets auto-debited from the investors account and the amounts is invested into a mutual fund scheme that has been Specified. The investors then gets a certain number of units which is based on the current ongoing market rate. Every-time a SIP is made, additional units keep getting added to the investor’s account. SIP has proved to be an ideal choice of investments for retail i nvestors who lack resources to pursue active investments.
Benefit Of SIP ?
Convenience
Offering a hassle-free mode for investing, one can directly get the SIP amount deducted from one’s bank account via a standing instruction to facilitate auto-debit function
Disiplined Savving
By investing through SIP, you commit to saving regularly. So, with SIP, one gets into a mode of disciplined savings along with creating a path of attaining one’s financial objectives & Goal
Flexibility
With SIP, one can decide and increase/decrease the amount as they wish. although it is always recommended to continue SIp with a long – term perspective.
Long Term Gains
Investing with SIP’s leads to long term gains because of the power of compounding & rupee cost averaging. Rupees averaging is an automated market timing technique