Systematic Investment Plans, or SIPs, are investment plans that provide you with the feature of investing money systematically and regularly on a term by term basis — weekly, monthly, quarterly, and more. It is an effective and hassle-free way to invest money in mutual funds for maximized returns. It is often looked at as a plan towards saving smartly and investing in building up wealth for the future.
How does SIP work?
Being a flexible investment plan, SIPs auto-debit money from your bank account for mutual funds investments. The process is such that you are allocated some units based on the trends of the ongoing market for the day — called net asset value, or NAV. Every time you invest money, you purchase extra units of the scheme at the current market rate, and then these are added to your account. With this, investors are benefited from Power of Compounding and Rupee-Cost Averaging.
What is rupee cost averaging?
Mutual funds investments are volatile in nature and keep investors sceptical about investing money. They think of finding a suitable time of entry into the market, and this is where the rupee-cost averaging comes to their aid. If you are a regular investor, you accumulate more units when the price is low in the market, less when the price is high. When the market is volatile, you even get the chance to gain a lower average cost per unit.
What is the power of compounding?
The power of compounding goes by a simple, singular rule: the sooner you start investing, the more money you grow.
For example, if you start by investing as much as Rs 10,000 a month on your 30th birthday, then in twenty years of time, you will have put aside Rs 24 lakh. By the time you reach 50 years of age, your investment would have grown by 52.4 lakh if the investment had a growth rate of 7% per year.
Is SIP the only way?
Several investors in the market have a belief that SIP is a product. However, this is not true. SIP is merely a tool which works to help you invest carefully and regular in the mutual funds available. They are carefully designed plans that cater to your financial goals, framed on the amount of money you want to invest. On Finserv MARKETS, the SIPs are well planned out, helping you achieve your financial goals.
How to invest in SIP?
SIPs for mutual fund on Finserv MARKETS have low risk and high returns. You also get the option to divide your funds into smaller parts so that you can gain maximum benefit out of your investment and maintain a good portfolio of investment. Your funds are invested across a broad spectrum of industries to help minimize risk. With a clear presentation on the investment plan, you receive regular updates on how your funds are performing in the market so that you have a better idea of what investment to make next. It also gives you the option to liquify your finances at any time, which is subject to a small fee.
The investments you make through SIPs are safe since investments in mutual funds are registered with SEBI — Securities and Exchange Board of India. SEBI protects your interests and helps you mutuals funds reach maximum potential. If you choose Finserv MARKETS for mutual funds investments, then you get to access financial planning tips and investment advice in just a few clicks. Besides, setting up this account is a straightforward process and involves submitting a few documents to complete KYC online.
If you even have a vague picture of your future financial goals, then it is high time that you invest in mutual funds through SIP. On FInserv MARKETS, you have a step-by-step process to process to proceed with the investment, and this makes the whole task a piece a cake. Besides, if you run into any trouble with setting it up, the expert online team can help you with the query in a short time. Moreover, the elimination of brokers means that you do not have to pay high sums of money to intermediaries.
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