Life has its ups and downs, in the similar way market has its ups and downs. In fact, when the market is down, you getmore units and when it’s up, you get more value of the units accumulated. That’s why,we believe that ANYTIME is the right time to invest in an SIP.
What is a Systematic Investment Plan? A Systematic Investment Plan (SIP) is a facility with which you can invest inmutual funds through small and periodic instalments. You can initiate yourinvestment on any day of the month by investing a fixed amount in a schemeof your choice.Over a period of time, you can accumulateenough wealth to turn your dreamsinto actionable decisions.
Flexibility: You can adjust the investment amount as per your convenience.
Convenience: You can also choose the frequency of your investments (weekly, monthly, quarterlyinstalments) as per your convenience.
Pocket Friendly: You can start an SIP for as low as Rs.1000. But remember your goals while starting the investment considering rising inflation.
Power of Compounding: An SIP not only inculcates financial discipline but it also helps you earn betterreturns as the appreciation on the invested amount gets compounded each time.
Limit Uncertainty by Investing Over Time: An SIP limits risks by spreading the investments over months, giving an evenspread of investments across market movements.
Simplified Goal Planning: A disciplined approach towards your SIP can help you map out your goals for thepresent as well as the future.
Stability in Investment: When the market is down, you get more units. And when the market is up, you getmore value of all the units allocated to you.
Balances Market Volatility: An SIP helps you avoid timing the market. This means that when the costis low, you get to buy more no. of units thus averaging the cost per unit.
1. Start Early: An early start with SIPs allows youto invest smaller amounts over alonger period of time, making itideal for long-term goals.
2. Link one investment to one goal: It’s important to focus oneinvestment plan on one specificgoal. This will help you analyse yourinvestments regularly, while lettingyou know how close you are toaccomplishing your goals.
3. Stay committed for thelong term: A long-term investment in SIPs canhelp you realise your goals through the power of compounding.
4. Diversify SIPs: Diversify your SIPs as per your riskappetite and time horizon required for each of your goals.
5. Avoid withdrawals basedon market movements: It’s natural to feel anxious due tomarket movements. However, it’s important to stay calm and remaininvested in order to realise your goals.
6. Invest in multiple SIPs: One SIP is not sufficient and youneed a mutual fund portfolio. It isadvisable to invest in SIP in equityfunds for long-term goals and debt funds for all short-term goals.
You can invest in an SIP from these available variants: Step Up SIP: This facility allows you to gradually increase the amount you want to invest based oninvestment appetite or increase in earnings.
Any day SIP: You are given the flexibility to choose an investment date (from the 1st till the 28th of themonth) as per your convenience.
SIP Pause: This facility will give you the option to pause your SIP for a specified number of instalments,and your SIP would restart from the immediate month after completion of the pause period.
Perpetual SIP: Typically, an SIP comes with a pre-determined tenure. Here, you have the choice to not enterthe end date in the SIP mandate. Thus, allowing you to redeem the fund after achieving thedesired financial goal.
Fast Forward SIP: This facility allows you increase the SIP frequency from monthly to weekly or quarterly tomonthly and fast forward your investment journey to reach your goals faster.
Will the stamp duty on mutual fund investments affect you significantly?
Stating From 2000 SIP to creating corpus of 300 times monthly expenditure
You don’t need wealth to create wealth. Just need action in the right direction