SYSTEMATIC INVESTMENT PLAN
Systematic investment plan (SIP) is a financial planning tool that helps you to create wealth systematically, by investing small sums of money at regular intervals of time. Investors can opt for amount based sips in stocks
WHY INVEST IN SIP
Secure your future-In order to meet your growing expenses of your day to day life like education, new house or marriage; you need to start investing regularly. With a small amount of investment every month /quarter with SIP, you can make bright future for yourself.
Accumulate Wealth with small amount– With SIP, you don’t need to invest a big sum of money i.e. you can start your investment with an amount as low as Rs. 2000/- . You will be able to accumulate wealth over long term.
Reduce Risks– For making strong presence in this volatile market, SIP gives you advantage to average out your cost by generating excellent returns in the long period. It reduces the risk associated with lump sum investments.
More Convenience– Make yourself free from the hurdle of large paperwork. Just select the amount and plan that you wish to invest in, the amount will automatically be debited on the date as per your convenience.
Build large Investment Portfolio– With SIP, you can invest a small amount of money in chosen options at the applicable NAV based Sale Price on each transaction date. You buy a less number of mutual fund units at a higher price and higher units at a lower price. This auto balancing helps to get a better return.
Benefits of SIP
§ Reduce risk because of averaging
§ SIP can be started with very small amount of money
§ Timing the market is not necessary
§ Long term financing goal can be aligned with SIP
§ Disciplined approach helps in controlling the emotions.