SIP investment is a simple way that
helps you invest money regularly. It is just like a recurring deposit where you
put in a fixed amount every month. Thus, it helps inculcate the good habit of
disciplined investing. SIPs have gained popularity all across the world. There
are no two thoughts on why almost all financial organizations have started
offering SIP plans to their clients.
Financial experts always say that the
best to way to reach your financial goals is to invest regularly. And this is
where the concept of SIP is getting successful. One can easily enrol himself or
herself in any of the good SIP schemes by submitting an auto debit mandate with
the completed enrolment form. The mutual fund debits the investor’s account on
the requested date, credit the units to his or her account and sends the
confirmation for the same. Now, if you want to take my opinion, then I would
say that SIP helps avoid the temptation of jumping from one asset class to
another during certain market conditions. IT also gives the benefit of rupee
cost averaging. SIP takes care that your average price works out to be lower
than the price you would have paid at the market peak. It takes care that you
invest across market cycles. Your average price works out to be lower than
investing at the market peak. It helps you avoid the temptation of timing your
investments as market timing is best left to professionals.
Instead of saving a huge chunk of money
and investing it in a lump sum investment, it is better to invest regularly in
smaller amounts. The reason being while your lump sum investment may attract
returns it does not give you the benefit of compounded interest that happens in
SIP. This is another key benefit that you get from SIP investment.
Website:-
Website:-
| http://www.wealthcareindia.com/sip-investement-mutual-funds.php |
