What is SIP?
SIP
(Systematic investment plan) is a tool of investing money through mutual funds.
The plan of investing a fixed amount of money every month over an extended
period of time regardless of whether the market is up or down is known as Systematic
Investment Plan.
why SIP?
The one big
reason to choose SIP is that money is
automatically invested regularly in a scheme without any effort on your part. And also, you can start your
SIP with small investment with minimum risk over the time, once you gain the
trust and return from your investment you can customize you SIP.
The
Benefits of SIP.
a. Inculcate
disciplined investment:
Being
disciplined is the key to become a successful investor. SIP provides
disciplined investment path. You can invest a particular amount of money on a particular
date which you have selected of every month.
B. The
Rupee Cost Averaging:
As an
investor your aim is to buy a stock at lower price and sell it on high price. So,
SIP’S allows investors to accumulate stocks at different price levels allowing
the benefits of rupee cost averaging.
c. power
of Compounding:
"Compound
interest is the eighth wonder of the world," Compound interest is
the interest you earn on your money, plus the interest it already accrued.
Minimum
limit of investment in sip?
You can start your 1st investment in SIP only with 500 Rs.
SIP makes easier for small investors to trade in share market indirectly using
SIP’S.
Customization:
You
can update yore SIP any time and anywhere. It means you can increase or decrease
Your
monthly SIP amount and also you can change the SIP date according to your convenient.
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