Systematic Investment Plan (SIP) is a smart financial planning tool that helps you to create wealth, by investing money in mutual funds.
SIP allows you to invest a certain pre-determined amount at a regular interval (weekly, monthly, quarterly, etc.).
In simple terms, a SIP is a disciplined planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future. Benefits of SIP:
• Helps in taking advantage of Rupee Cost Averaging: It helps the investor to tide over the ups and downs of the market. In current situation where the Indian market is so volatile, the investors who have invested through SIP are least affected.
Lets understand how Rupee cost averaging works:
Average cost: Rs. 10.08/- (i.e. Rs. 30.25/3)
Average Investment per unit 1500/149= Rs. 10.06/-
Therefore, the gain is = Rs. 2.98 (i.e. (10.08-10.06)*149)
• Disciplined Investing: SIP develops a disciplined approach towards investing money since the amount to be invested is very small so it is easy for an investor to pull out few hundred rupee notes out of his monthly expense.
• Take advantage of power of compounding: The rule for compounding is simple - the sooner you start investing, the more time your money has to grow. Systematic investing has a compounding effect on your investments.
Esta historia es de la edición April 2017 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición April 2017 de Investors India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
How To Build And Maintain A Long-Term Portfolio
Building a robust long-term portfolio involves two steps. First, you must decide on your asset allocation-essentially the distribution of your investments across various asset classes such that it aligns with your financial goals and risk tolerance.
Learn The Magic Of Self-Talk
There is perpetual self-talk taking place inside all of us
Health Cover: How Family Floater health insurance plans work to your advantage?
The right amount of health insurance coverage can help you stay on track with your finances and life goals. In the absence of health insurance, one may be forced to delve into current investments, jeopardising ambitions such as children's education and home ownership.
Empowering Women: Understanding Inheritance Rights in India
In the intricate tapestry of India's diverse inheritance landscape, where the threads of religious laws weave a complex pattern, don't entrust your legacy to fate's capricious hand. Instead, wield the brush of certainty by crafting your will.
Protecting Those Who Matter Most: Understanding the Importance of Life Insurance for Our Loved Ones
Mr. Sanjiv Bajaj is the Jt. Chairman & MD, Bajaj Capital, building the platform for the Business leaders of the Financial Services and Advisory sector to exchange their vision, experience, and views on making the right financial decisions.
Unit-Linked Insurance Plans: How to make use of ULIPS to meet long-term goals?
Unit-linked insurance plans, or Ulips, are a good option if you wish to combine life insurance with savings for long-term goals in one financial plan.
Why Should One Consider Investing In A Large Cap Fund?
An investor’s ability to create wealth in the longterm is directly linked to how well they create an all-weather investment portfolio.
Meeting Medical Costs with Health Insurance Plans
A medical emergency can occur at any time and to any person.
Water: The Elixir of Life
If there is magic on the Planet Earth, it is contained in water - Loran Eiseley.
The 100 Crore Wealth Legacy! A Vision
Generating 100 crores from modest investments is feasible with a long-term outlook, though market timing remains elusive.
