Do you want to invest your money with low risk and high return?
- Do you want to accumulate some amount to fulfill your financial dreams?
- Are you looking for an option to invest in small amount and get higher benefits?
- Have you just started your career and looking for some safe investment options?
- Are you planning your retirement?
If any or all of the answers of the above questions is YES, then nothing but SIP is the right option for you. You can do all that by start investing in Mutual Funds through SIPs. Savings are never enough and money never grows when kept in bank or pockets so you should choose wisely what is beneficial for you. A proper guidance can make your investment journey smooth and hassle-free. There are many wealth management company who are there to help you. Lately, Appease Wealth Solution became a famous name when it comes to investment.
Systematic Investment Plan commonly known as SIP is basically a mode of investment with mutual funds. It allows investor to invest a certain amount of money in a Mutual Fund over a period of time. It can be as small as Rs. 500 on a regular interval. In fact, you can decide your own time of investment – it can be weekly, monthly, quarterly or even annually. In this way you will be able to accumulate a large amount of money in a certain time period with a good return.
Let’s take an example to make it easy, everyone has some dreams to fulfill to buy their dream car or house or going in a foreign destination. Naturally we take a loan for purchasing something with high price value and then repay it in small amounts in form of monthly EMI. We never think that we are paying in extra amounts, there is an interest along with the principal amount. But if you plan your financial journey early then this small amount of investing in SIP can return you a large value without paying extra interests.
How SIP works?
Now, People starts earning at a comparatively younger age than before. If one plans their savings in a systematic way, they can create wealth over the long term. SIP is the right way for that. Generating returns and creating wealth is not the same thing. SIP will help you to create wealth and the process is also very easy. Your preferrable amount will be automatically deducted from your bank account at the interval at which you choose to invest.
Generally, SIP is done in such mutual fund schemes which does not have any lock-in period so you can take out your money at any emergencies. It will help you to meet your short-term financial goals also. Though it is impossible to save a huge amount directly, saving and investing in small amounts over a period of time will help you to meet the unexpected expenses.
There is a famous saying, ‘Mutual Fund is subject to market risk’ but if you invest in them through SIP there is a benefit of Rupee Cost Averaging. SIPs are great way to reduce the average cost of your investment, which in turn increase the scope of potential gains. In SIP more units are purchased when the price is low and lesser units at a higher price. Hence, your investments remain protected from the market volatility and best of its health.
Let’s see how much return you can expect for a certain amount
Now, let’s see how Rupee Cost Averaging benefits us.
At first take an example if we invest Rs. 2000 per month through SIP in Mutual Fund scheme then how much return we will get.
And now see if we invest Rs 24000 with a one time , lump sum investment then how it will be
From the above example it is evident that a systematic investment plan could be more rewarding in volatile times than one time investment due to the ability of generating higher returns by Rupee Cost Averaging which lowers the average cost of investment per unit.
Last but not the Least:
These are not the only benefits of SIP. There are different types of SIPs with different types of benefits. But now you know the main key of turning your income into your wealth.
In recent years, SIP has become the favorite mode of investment in Mutual Funds. All you need to do is use your due diligence while selecting the plans as per your investment horizon, and maintain regularity in paying the required amount in every month.
Yes, it is as simple as that.
You can visit https://appeasewealth.com/ to know more about Mutual Funds and SIPs and also to start investing seamlessly and paperless.
1 thought on “SIP – Your Investment Masterstroke”
Good article, appreciate the example given..