Any dream can be achieved if you work towards it. Building wealth is no different. A Systematic Investment Plan (SIP) can help you work towards your financial goals. Let us look at the features of a Systematic Investment Plan and how it can help you fulfill your investment objectives through SIPs.
1. Finance your future dreams:
The ultimate objective of investing is to achieve financial goals like buying a house or creating a corpus for your children’s future education. SIPs can help you achieve these goals over a period of time through small but regular investments.
2. Minimize your exposure to stock market volatility:
Through an SIP, you have the option to invest regularly in equity markets irrespective of the bull and bear phases. By investing a fixed amount every month, you may be able to pick up more units when the prices are low and vice versa so that, over a period of time, the acquisition cost per unit may come down. This is called rupee cost averaging.
3. Become disciplined with savings:
SIPs help you inculcate a regular saving habit as they require you to invest a fixed sum of money on a regular basis. Investing regularly in small amounts may often lead to better results than investing a lump sum.
4. SIPs offer flexibility:
SIPs offer you the flexibility to select an amount that you intend to invest. SIP is a simple, convenient and affordable way to invest for your future with as little as 1000 every month.
5. Create wealth with the power of compounding:
Compounding is a disciplined investor’s best friend. A Systematic Investment Plan (SIP) is one of the most effective means to beat market volatility and benefit from the enormous power of compounding over time.
With SIPs, you can dream bigger and achieve much more over a period of time. Start investing through a SIP today and work towards realizing your dreams.