In the last couple of years, Systematic Investment Plans popularly known as SIPs have come across a robust investment option. When it comes to SIP, many investors including experienced investor lack clarity.
In order to get a basic idea of investment returns, you can use SIP planner. It is an online tool that helps to calculate investment returns in a matter of a few seconds.
Let’s get back to the point. If you are confused about what and how’s of Systematic Investment Plans, worry not. We have got you covered.
Here is your investment guide for systematic Investment Plans that will help you to create wealth and achieve your financial goals as per your investment horizon.
Systematic Investment Plan
A Systematic Investment Plan enables an investor to invest a stipulated amount in a mutual fund generally it’s a mutual fund on a regular basis.
Why use SIP planner?
An efficient tool to sort out SIP calculations, SIP planner helps to calculate the returns on SIP in a matter of a few seconds. With the help of SIP planner, the investor decides whether he wants to go invest or give it a miss.
Why should you invest in Systematic Investment Plan?
You must be wondering why I should opt for a SIP. As an investor, what is there to gain? Well, your concerns are legit. SIPs offer various benefits and to an investor.
For starters, it will enable you to maintain and follow a financial discipline. As a result, it will offer robust returns and strengthen your financial immunity against market index level and ups and downs.
For instance, if you want to invest a pre-stipulated amount of money in a mutual fund plan on a monthly basis, you will have to spare some time to do so.
When you’ve figured out the timings, you need market conditions in your favor. In case of unfavorable market conditions, you will have no choice but to postpone your investments.
If you have a high-risk appetite, you might go ahead and invest.
SIP is above and beyond such plights. Under a SIP plan, the money is invested on a regular basis in the opted plan without any delay. It helps an investor to plan his/ her investments and accomplish his/her financial goals.
When an investor invests religiously over a long period of time regardless of the market scenario, he gets more units. This gives him an extra edge over other investors who don’t invest in SIPs.
The Power of Compounding
When an investor invests money in long investment tenure, he starts earning returns on investment. As a result, the money starts compounding.
With small investments on a regular basis, it enables an investor to generate a large corpus of funds which helps him/her to accomplish his/her long financial goals.
An investor can invest even in the best SIP plans through mutual fund scheme with the amount as low as 500 Rupees.
If desired, an investor can customize his/her SIP as per his/her investment needs.
Although the widely known Systematic Investment Plan is a monthly scheme, an investor can customize as per their convenience and have all the liberty put their money in Systematic Investment Plans on a monthly or a fortnightly basis.
Under Step-up Systematic Investment Plans an investor can increase his/her investment periodically. Apart from that, alert SIPis a regular SIP which intimates the investor when the market is down so that he/she can purchase more funds as per his requirements.
Under perpetual SIPs, investors don’t have to select the end date of a Systematic Investment Plan. When his/her investment goal is accomplished, as per his/her discretion the investor can exit from the SIP by informing the fund house in writing.
In a Nutshell
SIP is a go-to option for investors who want to cultivate investment discipline. It helps them accomplish their long-term goals by investing on a regular basis.