Why Systematic Investment Plan (SIP)?

SIP or Systematic Investment Plan is one of the most searched terms on Google with respect to banking and investment. Many investors are confused about what SIPs are and how they work. Hence, here is a quick guide as to how it what it is and how we can help you to create wealth over a long period to achieve your financial goals.

An SIP or a Systematic Investment Plan allows an investor to invest a fixed amount regularly in a mutual fund scheme, typically an equity mutual fund scheme. SIP allows you to invest a certain predetermined amount at a regular interval (weekly, monthly, quarterly, etc.). An SIP is a planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future.

Benefits of SIP

As a common investor doesn’t have enough time and resources, SIP proves to be a viable option for them. Listed below are the important benefits of Systematic Investment Plan.

  1. Reduces Risk because of Rupee Cost Averaging.
  2. SIP can be started with very small amount of money.
  3. Timing the market is not necessary.
  4. Long term financial goal can be aligned with SIP.
  5. Disciplined approach towards Investment helps in controlling the emotions.

Secret to achieving Much More with SIP:

  • List down your dreams and goals and work out a plan to achieve them through SIP
  • Ascertain the monthly/quarterly SIP required to achieve your goals
  • Identify the scheme(s) in which you would like to invest and complete the formalities for SIP investment including forms and cheques
  • Invest for the long term as the twin benefits of power of compounding and rupee-cost averaging work through different market cycles
  • Diversify your investments for your dreams through multiple SIPs in different schemes to optimise returns as per your needs

We help you to invest regularly without wrestling with market mood, index level, etc. through SIP. Let us help impart financial discipline to your life.