Choose the Right Path to Multiply Your Capital: Go for SIP
Have you ever wondered how Dhirubhai Ambani became such a dynamic entrepreneur? How he became one of the richest persons in the world? It was not by luck or destiny, but he actually worked for it! Thinking about something and getting the same is possible only if one devotedly keep trying for the same. There is a saying that goes, “If you want it, work for it.”
One of the biggest desires of everyone is to become financially stable. So would be yours as well. So have you planned something to make your future worth living? Or you are just sparing your time in search of shortcuts? If not, then let us provide you one.
You must have heard of the mutual fund investment; wherein the fund manager pools the money of various investors to put it into diversified schemes. It is the best way of making a productive investment so as to achieve the set financial goals in life. Furthermore, it offers one of the best ways as well to make an easy investment in a systematic way. So let us understand why SIP investment plan is the most convenient way of building wealth for the future.
Systematic Investment Plan(SIP)
This is basically a mode of making an investment in the mutual fund programmes. It provides the investors with a feasible mode of investment in the mutual fund by making periodic payment of a certain amount. It acts like a true-blue friend for investors as it inculcates the habit of investing regularly and wisely. Hereunder are some of the features which make SIPs remarkable in the industry:
- Builds a Disciplined Investor in Oneself: The systematic approach of investing in the mutual fund via SIP helps one in becoming a regular investor. As per the requirement, one needs to pay a certain amount of his/her choice at the recurrent interval which is auto debited from the associated bank account. With this, the investors become part of the growing economy by making a regular contribution by investment. In addition, they also earn better returns which help them in achieving their financial goals.
- Small Payments Lead to Big Income: In the case of investment via SIPs, investors make the choice of a particular sum that he/she can pay regularly. It can be as small as Rs.500 as well, which is put in by the fund managers into the best scheme to fetch the aspiring returns. With this, the small amount of money gets multiplied into a big corpus and provides heavy income to the investors.
- The Magic of Rupee-Cost Averaging: The investments via SIP investment plan are made periodically on different dates having varied NAVs. Due to this, the number of units allotted also varies every time the investor makes the payment. This leads to different cost on different dates. Henceforth, the average cost of investment in the mutual fund is computed to be comparatively lower thus benefiting the investors.
- The Benefit of Compounding: An investment made in the SIP mutual funds fetches interest on the compound interest rate. Accordingly, one can earn ‘interest on interest’ and accumulate huge wealth. In this manner, SIP helps one in multiplying the worth of capital and create a fortune for themselves.
- Offering Flexibility: One of the most important features of SIP is that it also offers flexibility to the investors. The schemes are open-ended and do not have a lock-in period, which provides investors with the choice of redeeming their funds as and when required as per the situation.
SIP has much more to provide us; we just need to be focused and remember the saying that goes, “All dreams can come true if we have the courage to pursue them.”
As we have read, SIPs have made the investments in mutual fund simpler, if you get in touch with us at MySIPonline, your journey shall be made even more simplified with various online tools that include SIP Calculator and Tax Calculator.
