By Rahul Pithadia : Like a Recurring Account exists in a Bank, Mutual Fund Investments renamed the same thing as SIP. SIP refers to transferring your money systematically to a Mutual Fund in a fixed amount at regular intervals. Lumpsum is also a way to MF Investment but there are certain parameters to be taken care which are beneficiaries under SIP.
Here are some outlooks as to why you should register a SIP:
- SIP is for Anybody and Everybody – SIP is a tool which is affordable by middle class income group as well. A small amount, even 1000 per month can do if you want to put in small and get big.
- Its always a ‘right time’ – SIP is deducted at regular intervals. Here, the entire amount is not invested at bulk, rather parts of money are invested with every transfer. Thus, you invest in all times, good and bad which gives you an average positive return.
- Befriend Volatility – Markets have one constant factor that they remain Volatile! SIP cuts the risk of volatility as parts of money get invested at different periods which reduces risk to a drastic level and gives you assured returns.
- Power of Compounding – It will ensure that small contributions grow into large sum. The more time you give, the more is the power of compounding.
- SIP (SLEEP IN PEACE) – Once you start up with your SIP, forget about the market volatility, forget about the risk and returns because power of compounding will show its power and after a good wait you will definitely get good returns.
Thus, make an SIP now and get benefitted with all the benefits as we said above, There is no specific time to start SIP – its always a right time!
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