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SIP (Systematic Investment Plan)

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What Is A SIP?

A SIP, or Systematic Investment Plan, is a hassle-free and convenient method to build wealth over time. With a SIP, investors can make regular investments in a disciplined manner, without the need for frequent monitoring or timing the market. This makes it an ideal investment option for individuals who are looking for a simple and systematic approach to achieving their long-term financial goals. Unlike other investment avenues, a SIP allows investors to start with a small amount and gradually increase their investments, providing them with flexibility and ease of use.

What Are The Benefits Of SIP?

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.