SYSTEMATIC INVESTMENT PLAN (SIP)
You Earn Regularly…
You Spend Regularly…
Do You Invest Regularly?
We all have various dreams that we want to realize – owning a Car, a House or going on a Vacation. Besides these, we also need to plan for Children's Education, their Marriage and our Retirement.
Achieving these dreams may seem like climbing Mt Everest, but its possible if you prepare for it – Step by Step
SIP or systematic investment planning is method through which you can invest in mutual funds through small and periodic installments. Though an SIP can be initiated on any day of the month, we suggest you to consider 12th and 25th of every month for setting aside money for investing. This will ensure that you save some money on 12th after paying all your essential bills and the rest on 25th after meeting most of your monthly expenses! What's more, the plan comes with the flexibility to invest any amount starting with as little as Rs. 1000. Whether you choose to save during the beginning of the month or towards the end, the important part is to remind yourself to save, just the way you keep reminders for other payments.
Systematic Investment Plan (SIP) is a financial planning tool that helps you to create wealth, by investing small sums of money every month, over a period of time. A Systematic Investment Plan (SIP) is a vehicle offered by mutual funds to help investors invest regularly in a disciplined manner.
Invest Regularly
Systematic investing has a compounding effect on your investments. In the long term, an investment as low as Rs 1000/- per month can swell up into a huge corpus.
Start Early
Similarly, starting your investments early also has its own advantages. Starting early means that the power of compounding starts acting on your money earlier, thereby potentially generating better returns.
Consider the following graph:
An individual who starts planning for his retirement at 25 yrs of age by investing Rs. 1000 / per month may collect up to Rs. 40 Lakhs on retirement whereas his investment over the period may just be Rs. 4.2 Lakhs
On the other hand, if the same individual delays his retirement planning by 5 yrs, his wealth upon retirement may reduce significantly (approx Rs. 15 Lakhs.)
While the purchase can be initiated on any day of the month, the actual purchase date can be 1, 7, 10, 15, 20, 28of every month.
If you are a new customer, Start your investment process with Birla Sun Life SIP in four easy steps: