If you’ve been even mildly interested in seeking to grow your wealth or are surrounded by financially sound friends, you would have surely heard the term Systematic Investment Plan (SIP) and read about its benefits. For those who want to create wealth for a long period of time or want to fulfil their financial goals, SIP is one of the most important ways of investing smartly.
What is an SIP?
An SIP allows an investor to invest a fixed amount of money on a regular basis in a mutual fund scheme. SIP has become one of the smartest financial tools in recent times as it helps you build wealth step-by-step, for a long time. You can start an SIP with just ₹1000 per month and enjoy the benefits of rupee-cost averaging and the power of compounding. It also teaches you to maintain a disciplined approach towards managing your money and helps you hedge your investment against inflation.
Why should you consider an SIP?
- Financial Discipline – Since it requires you to invest a pre-determined amount at regular intervals, starting an SIP will impart financial discipline to your life. It will help not just you, but your family in the future, including your spouse and your children to reap the benefits of your planning.
- Escape market volatility – You don’t need to wrestle with the market’s index level or its moods to invest. Rather than being dependent on the market and waiting for it to turn optimistic, you can start planning and investing today itself and let your money do the work for you.
- Advantages of rupee cost averaging – This is an effective strategy that eliminates your need to time the market. As the amount you invest is constant, you get more units when the market is low and few units when the market is high. This helps in averaging the purchasing cost of your mutual funds.
- Benefits of compounding – The key to building wealth is to start investing at an early age and keep investing regularly. When you invest for a long period of time, you start earning potential returns on your investment, thus enjoying the benefits of compounding. This large corpus can help you fulfil your big dreams with even a small investment.
- Flexibility – SIPs offer flexibility in terms of the amount or the quantity. You can also choose the intervals for investments like monthly or quarterly as well as on what date you want to invest. So, based on your individual needs and your income, you can select a plan that works best for you.
What makes it the #SabseImportantPlan?
An SIP is a gateway to help you fulfil your financial goals. Whether you’re dreaming of buying a luxury car, want to go on a foreign holiday or plan to buy your dream home, you need a systematic plan to help you realize these dreams. Rather than relying on luck or waiting for your time to come, take your future in your hands and make it a reality with the right planning. With an SIP, your risks are relatively reduced due to rupee cost averaging and you don’t need to time the market either. And the greatest advantage is that you can start with a small amount and increase it as your salary increases over the years.
A bright future is a result of good planning that starts today! Aim to invest in the #SabseImportantPlan with Aditya Birla Sun Life Mutual Fund and help your dreams become a sweet reality!
Mutual fund investments are subject to market risks, read all scheme related documents carefully.