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5 Reasons Why You Should Start SIP Investment?

Author: Kartikya Roy
by Kartikya Roy
Posted: Feb 13, 2020

The acclaim of SIP investments or Systematic Investment Plan has grown over the years. Under the hawkish eye of SEBI & AMFI, the Mutual Funds industry has grown many folds over

the years & it has also bought the awareness of SIP Mutual Fund Investments. Visit any financial advisor & ask about savings, they shall recommend SIP investments. The idea of a systematic

investment plan has been such a Noble idea that it is unavoidable. Even then also, there are people who stay perplexed about the concept of SIP. So here are certain reasons as to why one

should invest through SIP.

1. Financial Discipline

Discipline is the principal key factor for any success or achievement. Without this salient feature, no one can attain the target. Personal finance is not an exception here. When it comes to

saving for the long term, the discipline of regular savings is very important as it keeps you updated about the market & about your finances as well. SIP investment in Mutual Funds is by far the

best & simplest way to be regular enough to generate a big corpus over the long term.

2. Power of Rupee Cost Averaging

While in the stock market there is always a risk of losing a big sum of money with a fluctuating market. Traders usually eye to purchase when the market is low & sell when the market hits

the bull. But in our day to day lives sticking to our screens & regulating the stocks could be a daunting task especially for someone who is not much aware. SIP is an answer to such wary souls

to can time the market. The idea is very simple. You shall buy when the market hits lows & highs which in turn would handle the uncertainty of markets.

3. Double benefits of Power of Compounding & Long term Investments

Compounding simply means reinvesting the earned. Say for example you invested Rs 1000 and it reached Rs 2000 at the end of the year. Then the next cycle would start from Rs 2000

and not from Rs 1000 which was the first investment. This gives ample impact to your corpus over the long term. Imagine this over a period of let's say 10 years. This is such a powerful tool to

generate mutual fund sip returns.

4. Invest with just Rs 500

SIP Mutual Fund is so versatile that it gives the flexibility to invest with as little as Rs 500. In this way, anyone starts investments & create wealth over the long term. From a beginner to an

experienced person can invest. Even one can start SIP investments for their newborn which can help then attain good corpus over the long term.

5. Invest in SIP online

For SIP investments, one needs not to humungous paperwork. One can simply visit login to mutual fund portals & fill in the required data like name, address, PAN card, nominee details,

select the fund, amount & the date which is most apt for the SIP & you shall be sorted for long. No hard work required. It will be a completely hassle-free online SIP investment process in terms

of prospective investors.

About the Author

Start Sip Investment Online by InvestOnlinein platform without any transaction fees.

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Author: Kartikya Roy

Kartikya Roy

Member since: Feb 09, 2020
Published articles: 2

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