Systematic Investment Plan- Simple way to invest!

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You have always wanted to invest your money wisely and regularly in order to meet your financial goals effectively. A systematic investment plan is an investment tool which allows you to invest a fixed amount of money at regular intervals in a mutual fund scheme for a continuous period.

These can be compared to recurring deposit accounts in banks. So if you want to buy a car, house or even save for your child’s education & have surplus income you can invest in a SIP and ensure you achieve your goals. There are several benefits to investing through the SIP route.


Helps you develop a disciplined investment approach
An SIP allows one to invest a moderate sum regularly without disturbing your household budget and assist in creating a reserve for your future needs. Whatever is your monthly surplus, investing it right is the key to financial success.


Ease of investment
It is always easier and better to make small investments at regular intervals rather than make one large investment at one go. Also SIP’s can be automatically debited from your Savings Bank a/c. Thus without you remembering, your investments are made every month.

 

Advantage of Rupee cost averaging
Everyone wants to buy a share when its price is low & sell when price is high. But the trouble with this method is that you have to constantly keep a track of the stock prices. After tracking too you may not get a good deal.  Rupee cost averaging or buying in small amounts regularly eliminates the risk of timing in the market and over a period of time the investment averages out the market highs and lows.

 

An SIP can be started in any Mutual Fund Scheme like Equity, Debt, MIP or Liquid. As per you your investment time horizon, do invest in any of the schemes. By opting for the systematic investment route, you are ensuring that small sacrifices yield a big feast!

 

So basically never hesitate investing through SIP’s. There are other ways to investing also but SIP is simply the most recommended and efficient way.

Contributed by Kshitij Shah.

Comments  

 
0 #1 www.flexopen.com 2014-05-09 04:23
Hi, yup this article is truly fastidious and I have learned lot of things from it regarding blogging.

thanks.
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