SIP: A Dynamic Investment Plan For Investors

SIP: A Dynamic Investment Plan For Investors

SIP or Systematic Investment Plan has gained extensive popularity among investors in the last few years. The SIP growth gets a boost when demonetization occurs and campaigns like "Mutual Fund Sahi Hai" also acquainted people with the SIP's benefits. A SIP is an investment planning tool that is completely different from the mutual fund schemes. It allows investors to invest regularly in mutual fund schemes, typically in an equity mutual fund schemes. An investment under SIP will help you to make your funds stagger over a period of time. This tool gives great flexibility to the salaried investors to achieve their financial goals as it filters the burden of investing a lumpsum in equity mutual funds. Investors can simply invest a fixed amount on a regular basis over the period through SIP and it happens as per the choice of investors itself. 

Benefits of SIP

• Investing in the fixed pre-defined amount on a regular basis for a long time helps to reduce the overall risk as it absorbs the market volatility to a certain extent.
• The initial investment you just need to start SIP is only Rs 500. Therefore, you can also get the flexibility to average your purchase cost.
• It teaches investors to invest in a disciplined and phased manner and ensures better long-term benefits compared to lumpsum investment.
• You can make your investment healthy by investing in SIP as you are allowed to buy more units in a low market situation.
• You can customize the way you put money in SIPs as it allows you to increase or decrease SIP amount periodically.

Want to Invest in SIP!! Go through the SIP Calculator to analyze the returns for the fixed price you may have decided to invest in.