One can also increase the monthly investment amount via SIP step-up feature. Thus, it is an affordable way to invest each month without hurting your wallet. SIPs help you to invest with as little as Rs. This helps the investor build a large corpus in the long run, even with a small amount of investment. Over time, this results in a snowball effect which increases your potential returns manifold, thus helping you earn from the power of compounding. Power of CompoundingĬompounding occurs when the returns that you earn on your investments also start earning returns.īy consistently investing in equity funds through SIPs over long periods of time, your returns also get reinvested. Investing in SIP eliminates the need for investors to actively time the market and he/she can benefit by buying more units of the equity fund when the price falls and lesser units when the price has risen. SIP is usually a better investing strategy rather than a lump-sum investment as it helps to reduce the average cost per unit of investment through a method called Rupee Cost Averaging. The frequency of investment can be daily, monthly, quarterly, or yearly in a fund but the monthly option is the most popular.īenefits of investing in SIP Rupee cost Averaging
SIP investment facility is offered by mutual funds that allow the investor to invest a fixed amount of money periodically in a mutual fund scheme.
What is SIP?Ī systematic Investment Plan or SIP is a disciplined way of investing a predetermined amount of money at regular intervals. Whether you are a seasoned investor or a beginner, this blog will provide you with valuable insights into the world of mutual fund investing and help you make informed decisions that align with your financial goals. We will also provide guidance on choosing the best date for SIP mutual fund investments. In this SEO blog, we will explore the benefits of investing in SIPs and the key factors that investors need to consider when deciding between monthly or daily SIPs. However, many investors are unsure whether to opt for a monthly or daily SIP investment plan and which date to choose for their investments. SIPs offer a convenient and hassle-free way to invest in mutual funds, allowing investors to put in small amounts of money at regular intervals. Investing in mutual funds through Systematic Investment Plans (SIPs) has become increasingly popular among Indians seeking to grow their wealth in a sustainable and disciplined manner.
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