SIP in Equity Mutual Funds
There are many goals to achieve, for which a large amount of money is required.
Small Investments Regularly to Fulfill Your Financial Needs Assessment
There are many goals to achieve, for which a large amount of money is required. A systematic Investment Plan is a solution. It helps us in achieving our various life goals systematically.
What is an SIP?
A systematic Investment Plan (SIP) is the technique of investing in mutual funds through small, periodic installments.
An investor can invest small sums of money monthly to contribute towards his goals and have the required corpus created at the time of accomplishment of goals.
SIP is a simple, innovative & time-tested method to achieve financial goals.
SIP is a disciplined approach to investing
Benefit from Rupee Cost of Averaging & Power of Compounding
Benefit from the Time Value of Money. A lump sum amount invested at the beginning of the year has more value than the amount invested in installments over a later period.
The investor need not time the market.
Since a small amount of money is invested each month, SIP is a convenient mode of investing.
Power of Compounding:
Compounding investment earnings can turn your small investments into a whopping sum after a while. The best way to take advantage of compounding is to start saving and investing wisely as early as possible.
Why Should You Invest Through SIP (Systematic Investment Plan)?
SIP is considered to be the best way of achieving financial goals because of the two Brahmastras possess:
Power of Compounding:
Assuming a rate of return of 15%, what would be the value of ₹1 after
5 yrs 10 yrs 15 yrs 30 yrs
₹2 ₹4 ₹8 ₹64
Therefore, the thumb rule to benefit from the power of compounding is 'START EARLY.' Give maximum time to your investment to get the most out of the 'POWER OF COMPOUNDING.'
Rupee Cost of Averaging:
With SIP, the investor gets more units when the price falls and fewer when the price rises. The cost per unit is averaged at the end of the day, and the cost per unit is arranged.
Give time to your investment rather than timing and benefit from the 'Power of Compounding.'