Take the Smartest Decision of Your Life. Start SIP & Get Surprised!
We hope we don’t need to squander the time in discussing the concept and meaning of SIP. The excellently growing trend of SIP depicts that people now are well aware of at least the meaning of the term. Still, being among the good investment service leaders, we don’t want to leave any of you guys backward.
So, if you are completely new to this, and want to start it with understanding the meaning of SIP investment, check out to our previous blogs and grab your part of knowledge from there.
Today, we are going to explain that why SIP is said to be the smartest investment decision by many of the professionals. So, let’s begin with it:
Well, it goes like Systematic Investment Plan, but again, it is also known as Smart Investment Plan. The full-form of SIP gives us two important factors that complete the tale of “Why it is the smartest decision?”
Think You Are Going on a Trip:
Suppose, you are planning to go on a holiday trip with your friends. How will you prepare yourself? Of course, you are not going to do it in this way by simply setting a destination, and driving toward it. Rather, you will plan it properly with your friends that where you guys will go and how. You will make a complete map of the whole trip so that you face no problems while enjoying it.
In case you simply hit on to the road without planning properly for the trip, you may face lots of problems. On the other hand, by making a complete map of the entire trip till the end day, you can effortlessly head on to it.
Thus, in every aspect of our life, not only if it’s a trip with friends, a systematic and smart approach helps us to lead the actions with better consequences. SIP investment is what exactly you can call to a blend of smart and systematic move in the dictionary of investment. It has several benefits which make the entire process of investing in mutual funds an effortless job. And, it also helps in reaping superior benefits than that of other investment vehicles. Let’s know the various advantages of SIP investment which makes it superior to any other process of investments:
- Constant Commitment: You might be knowing that in SIP investments you are required to put in a periodical instalment say Rs. 1,000 per month. When you constantly keep investing this amount for a long period of time, you automatically adopt a healthy habit of savings. Moreover, a constant commitment to your SIP helps you develop some more positive habits such as increasing savings to meet the SIP commitment, monitoring the expenses, etc.
- You can Skip a Pay: Yes, it’s true that you can skip instalments in your SIP investment. Suppose, for some reason, you don’t have enough balance in your bank account for paying the upcoming instalment of your SIP. No matter, you can easily skip it and continue with the SIP next month again. The best part is that no charges will be levied on you for this, which in the case of Recurring Deposits (RD) where you would have to pay a fine on the missing payment of installment. But, make sure that you do not miss three consecutive instalments of your SIP, in this case, the fund house will cancel your SIP.
- Rupee Cost Averaging: This is one of the best benefits of mutual fund SIP investment. It helps you to be average down the whole cost of your investment so that you can reap higher returns from your investment. It works because of the periodical investment method, and the changing value of the schemes over time. This helps you to purchase a different number of units of the mutual fund schemes each time you invest your instalments. So, sometimes you buy more and sometimes less number of units. Precisely, in the bearish market, your investment buys a higher number of units and in the bullish market, you buy less. Furthermore, it helps you to average down your total buying cost, and thus you can easily heal the buys of bullish market time, and get benefited.
- Power of Compounding: This is again among the top benefits of SIP investment. It helps to multiply your investments into manifold thus transforming into a giant corpus. All it needs is your commitment toward it for a long-term period. The power of compounding can help you create millions if you stay genuinely convicted to your choice.
- Planned Approach: As the name suggests, systematic & smart SIP provides you with a completely planned approach to your wealth creation journey. Systematic, in the manner that it allows you to invest small amount periodically. And smart because it saves you from getting into danger of other direct investments like stock trading.
Henceforth, there is no fault in saying that SIP is the smartest investment decision. If you stay committed to your SIP over a significant period of time, the excellent returns on your investment will definitely surprise you. So, why waste any more time, get started now. We, the team of MySIPonline, are highly concentrated in providing you with the best experience in your investment journey.
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