They say, ‘the journey of a 1000 miles begins with a single step.’ Systematic Investment Plans work on the same philosophy.
An SIP is a simple, convenient and disciplined way to meet your financial goals. It basically allows you to make the most of the growth potential of mutual funds, by investing calculated amounts periodically.
by investing calculated amounts periodically.
There are three important principles of SIP:
1. Start Early
Compounding is a powerful force in this facility, which essentially means growth upon growth. By investing a fixed amount every month it’s not just the amount invested every month that has the potential to grow, but the growth on the previous monthly installments as well.
Example:
- January
- January Growth + February
- January Growth + February Growth + March
The earlier you start, the longer you can invest, the greater you can earn.
2. Invest regularly
It is advised that you continue the race like a tortoise – Maintain a consistent pace and not stop. This can help you manage market volatility, as it lets you average out the cost of your investments over time (A concept called rupee cost averaging).
3. Invest the right amount
The big question that arises is how can you calculate the right SIP amount? All you have to do is answer three simple questions:
- a. What is my goal? (Example: To buy a dream house that would cost me Rs.4000000)
- b. How much do I expect to earn? (Example: I expect a 12.5% rate of return per annum)
- c. By when, do I want to reach my goal? (Example: I see myself buying this house in 15 years)
Once you answer these questions, our SIP calculator will help arrive at the right amount for you that can help you achieve your goals.
Reasons SIP is a SMART choice for your investments
| Specific |
SIPs can be very specific to the financial goal you target |
| Measureable |
SIPs showcase their performance every month, thus giving you a status on how your investments are performing |
| Attainable |
SIPs allow you to invest in small amounts regularly, slowly directing towards attaining your big dreams |
| Relevant |
SIPs allow investments in Mutual Funds that provide a wide basket of schemes to select from based on their relevance to the Investor’s financial goal |
| Timely |
SIPs work on the principle of being timely; one needs to keep aside a set amount of money every one period |
Today seems like a good day to start your first SIP. click here
Specific
SIP investments can be as specific as based on the financial goal that one is targeting
Measureable
SIPs showcase their performance every month, thus giving you a status on how your investments are performing
Attainable
SIPs allow you to invest in small amounts regularly, slowly directing towards attaining your big dreams
Relevant
Mutual Funds provide a wide basket of schemes to select from based on its relevance to the Investor’s financial goal
Timely
SIP works on the principle of being timely; one needs to keep aside a set amount of money month on month for the SIP perio
To start your first SIP, click here