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5 Reasons for Achieving Your Long-Term Financial Goals

Author: Avnish Meheta
by Avnish Meheta
Posted: Jun 01, 2017
mutual fund

With several different investment options now available, increasing number of investors now prefer investing in mutual funds through SIP. The Best SIP Plans have been offering consistent returns and have been beating their benchmarks, making them an excellent investment vehicle for different types of investors. In this post, we’ll have a look at how mutual fund SIP plans can help you achieve your long-term financial goals.

While there are many different types of investment options now available, mutual funds are currently trending. Some of the top schemes have been offering exceptional returns on a consistent basis, making them an excellent investment vehicle for the investors. Moreover, there are many different types of funds to suit the investment style of various investors.

However, rather than investing a lump sum amount investors are investing in mutual funds through SIP (Systematic Investment Plan) due to the number of benefits that this method offers. If you have a long-term financial goal, a mutual fund SIP can be an excellent option for you. How? Let us try to find out!

1. Discipline

Ask any successful investor, and they would agree that discipline is very important to achieve your financial goals. Several investors begin investing in mutual funds with a lot of enthusiasm, but the enthusiasm dwindles after a few months. With the help of Best SIP Plans, investors get to invest a fixed amount in the selected scheme on a fixed date, allowing investors to attain investment discipline which takes them close to their financial goals.

2. Compounding

As mutual fund returns rely abundantly on the power of compounding, it is very important to start investing as early as possible. However, most of the people believe that they do not have investment-worthy funds at the moment and thus wait for the right time. However, as SIP plans do not require large investments, investors can easily start investing with a minimum amount each month. There are several schemes where an investor can start investing only Rs. 1,000 per month.

3. Rupee cost averaging

Popularly known as RCA, rupee cost averaging is another benefit of investing in mutual fund through SIP. As a fixed amount of money will be used to buy the selected mutual fund units every month through SIP, it allows an investor to get more units when the market is low. Over time, this can significantly reduce the average cost of buying the units. On a long-term basis, this can provide exceptional benefits to the investor.

4. Diversity

A mutual fund can invest your money in dozens or even hundreds of different securities, allowing you to achieve excellent diversification by only investing in a single fund. For instance, if you select an equity based fund, it will invest your money in shares of several companies across several different industrial sectors. This will allow you to gain maximum benefits from the growth of every sector.

5. Affordability

Apart from minimum investment requirements, the cost of getting your investment managed by a fund house is minimum too, especially as compared to other types of investment, like share market, which requires you to pay an annual fee, brokerage, transaction fee and even additional fee for investment advice or research tools. Mutual funds have minimum recurring expenses, allowing you to get better returns on your investment.

As you can see, there are several reasons which make mutual fund SIP a perfect way to achieve long-term financial goals. Just make sure that you select a good fund house, and a scheme that suits your objectives and you are sure to get exceptional results.

About the Author

If you are planning for a long-term financial goal, a mutual fund Sip that suits your objectives and your surety of getting exceptional results can be an excellent option.

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Author: Avnish Meheta

Avnish Meheta

Flag of India

Member since: Jun 01, 2017
Total live articles: 7

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