Many people don’t know but SIP is an easiest way to Create Wealth. You can start your SIP with as low as Rs 500/= per month and create a dream retirement corpus by the time you retire.
SIP is similar to a recurring deposit, every month on a specified date an amount you choose gets invested in a mutual fund scheme of your choice. Throuhg SIP or Systematic Investment plan you can invest small amounts regularly in schemes of mutual funds. The concept is based on Rupee Cost Averaging and your money gets invested in scheme of Mutual fund of your choice regularly on an appointed date. This beats the equity market fluctuations over time and gives an average price over the long period of time. Almost all Mutual Funds have 4 - 5 dates in a month for an SIP. A retails investor can choose to invest either on one of these dates on a monthly basis, or choose more dates on a weekly basis. Weekly option even works better as the concept of SIP is the same for weekly, monthly or quarterly option.
SIP is an amportant tool as a part fo the financila planning to create wealth on long term basis. If you are looking to retire in next 20 years now is the time that you start planning for your retirement. SIP in an equity scheme of a mutual fund is the easiest possible answer in today’s scenario.
A Systematic Investment Plan or SIP allows us to take advantage of the growth potential of stock mutual funds by making regular investments. SIP offers many benefits like: