A mutual fund is one of the easiest investment options for individuals. There are different types of mutual fund schemes, and you can invest in a scheme that best fits your goals, risk tolerance and investment horizon.

You can make lumpsum investments in mutual funds or initiate a Systematic Investment Plan (SIP). SIP allows you to invest a predetermined amount at regular intervals in the mutual fund scheme of your choice.

Today, we bring to you nine great reasons to invest in mutual funds through SIP.

1. Disciplined investing

   When you invest in mutual funds through a Systematic Investment Plan (SIP), you invest a certain amount of money regularly. As a result, you become disciplined with your investments as SIP makes investments automatic.

2. Hassle free process & easy on the pocket

   Starting an SIP is a onetime hassle-free process. You just need to instruct your bank to enable auto-debits from your account for chosen mutual fund, amount and frequency. The whole process could be done online in a few mins. Moreover, you can start investing in mutual funds through an SIP, starting at just Rs.100.

3. Update SIP amount at any time

   As an SIP investor, you can update your SIP amount at any time. Through the step-up SIP facility, you can increase your SIP amount by a certain percentage every year with an increase in your income.

4. No need to time the market

   When you start an SIP, you continue to invest in the market irrespective of the current market levels. So, you can stay away from the dangers that come with attempting to time the market.

5. Keep your emotions at bay

   As you are not looking to time the market, systematic investments also help you keep the varied emotions associated with mutual fund investment at bay. Acting on these emotions can have adverse effects on your investment portfolio.

6. Benefit from the effect of compounding

   Compounding in investment means that interest on interest i.e. your investment returns can also help to generate reasonable returns. So, when you continue investing in mutual funds through SIP over the long term, compounding starts to show its true colours and help build wealth in long run.

7. Pause SIP

   Financial conditions do not remain the same. You may come face to face with various financial difficulties in your investment journey. In such situations, you may pause your SIP. Your existing investments will continue to grow, and you can restart your SIP easily when things become normal.

8. Averages out your cost of investment

   When you start an SIP, you invest a specific amount of investment at regular intervals. So, SIP averages out your investment cost. You may end up with a lower cost of investment than a non-SIP investor.

9. Initiate multiple SIP investments at one go through Multi-SIP

   Now that you are aware of the many features of SIP, you may start multiple SIPs for yourself and your family members to achieve different goal. You can do that through Multi-SIP facility to create several SIPs at one go.

Conclusion:

Investing in mutual funds through a Systematic Investment Plan (SIP) comes with several features. It is also one of the easiest ways to plan and one can aim to fulfil goals with help of an SIP.

So, what are you waiting for? Start an SIP today to make your dreams a reality.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.