The Systematic Investment Plan is Disciplined Way to Create Wealth

Most of the times we stay away from investing because we fear whether it is right time to invest or not. We are also doubtful about where to invest. These issues make our investment unprofessional. There is a very good option that will remove these problems and will make us disciplined investors – a systematic investment plan (SIP) is the best way of investing your funds on a regular basis. SIP allows you to invest a prefixed amount for a prefixed interval in a mutual fund scheme of your choice. On the defined date, the amount indicated by you will be automatically debited from your bank account and invested in the scheme selected by you. Hence, after you have set an SIP you are not required to track the investment dates.

The benefits of SIP are -

No Need to Time the Market

By investing a small amount regularly into the schemes you can avoid the common error of investing large sums in bullish markets and small sums in bearish markets.

Rupee Cost Averaging

A SIP allows you to invest a pre-specified amount in a scheme at periodic intervals. Therefore, whenever the market moves down and the net asset value (NAV) of the scheme is lower, you end up buying more units of the scheme. If the market moves up, the NAV of the scheme rises and you will get less units of the scheme. Hence, the average cost of purchase works out lesser

Advantage of Time for Wealth Building

Building wealth requires investment regulation for long time. A SIP in an equity mutual fund held for several years will help you build a tax-free, inflation-adjusted portfolio.

A Systematic Investment Plan helps you to invest at regular intervals, also through an automated withdrawal from your bank account. If you start planning early, you’ll have a few decades to watch your investments grow. Because you have a long time until retirement, your money has time to convalesce from any downturns. Once you have done investment in Systematic investment Plan your money will be start growing systematically. Returns in SIP based on the compounding; due to this reason money grows systematically.

Hi, I am indrajeet Singh working in RR Finance as a post of Digital marketing analyst. Here I find the updated schemes and write about them to increase the reach so that investors understood easily. visit www.rrfinance.in for all schemes.