Wednesday, 10 February 2016

Invest In Your Rewarding Future With SIP

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.


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