Everyone talks of mutual funds and SIP these days. Many of us may not even know about it in depth. Let us learn the concept of SIP in this article. In this world, there are several options available to invest your money. But the sole responsibility of choosing the best option lies entirely on you. We may have many financial goals and to attain those we need a substantial amount of money. According to our goals, we need to have a proper financial plan in place. It’s very simple. Write down your goals and the appropriate amount required to fulfill those. Next, understand your risk type. For example, you can be a high risk taker or a person who cannot take big risks due to low income or more dependents. The stock market provides an investment solution for all sorts of investors. A high risk taker can invest more of his amount in equity and a non risk taker can invest more proportion of his money into debt instrument. Take the help of a financial advisor and decide on what type of fund you require to meet your investment goals.
Systematic investment plan gives you a lot of flexibility in terms of investment. You can increase your investment amount anytime, you can pause your investment, then resume it whenever possible and the tenure also can be chosen as per your convenience. You can start it with a very minimal amount.
Power of compounding:
SIP gives you the chance of getting higher returns when compared to other financial assets due to the compounding effect. It means that not only the principal amount invested earns interest but your interest too earns interest on and on.
Systematic investment plan is the best way to achieve your life term goals. Dreams will remain dreams unless you make concrete efforts to attain them. So what is the most essential thing other than hardworking? Finance is necessary to whatever goal you have right from higher education, buying a high end bike, buying your favorite jewellery ,etc.We have got so used to spending these days due to excessive exposure to various brands and marketing strategies. But saving and investing are the two major aspects which will help us to have a secured future. We need that financial discipline and SIP will bring it in our lives. We will get into the habit of investing a certain amount regularly due to SIP. You need not be an expert or research analyst to know the returns you may get from SIP. You have online SIP calculator that will help you calculate the returns you will get if a particular amount is invested for a particular period of time. Once you have decided your goals and the amount you prefer to invest, you can know the returns by visiting https://www.karvyonline.com/tools/sip-calculator . The earlier you start investing in SIP, the better return you will get. Do it now!