What is SIP ?

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 Systematic Investment Plan :

Everyone has dreams and goals—a new car, a bigger house, a family vacation to an exotic destination, and so on. But it is possible to achieve your dreams only if you work actively towards them. Investing in Stocks,Real-Estate,Mutual funds through a Systematic Investment Plan (SIP) can be a simple way to help you achieve your goals. So, let’s look into the meaning of SIP, how they work, and how they can benefit you.

What is Systematic Investment Plan investing ?

 It is a type of investment strategy where an investor invests a fixed amount of money at regular intervals, such as weekly, monthly, or quarterly, into a mutual fund or other investment vehicle.

What is the purpose of SIP ?

The purpose of SIP investing is to reduce the impact of market volatility on an investor's portfolio, by averaging the cost of investment over time. This means that an investor buys more shares when the price is low and fewer shares when the price is high, which can result in a lower average cost of investment.



What are the benefits of Investing in SIP ?

1) Low initial investment :

You can invest in mutual funds through a SIP with just Rs. 500 per month. This can be an affordable way to invest each month without hurting your wallet. You can increase your monthly investment amount with a rise in your income via SIP step-up feature. Mutual fund houses allow investors to top up their SIPs on a regular basis. So, even if you start with Rs. 500 or Rs. 1,000 every month, you can invest more over the years. This strategy can help you reach your investment goals at a faster rate.


2) Power of Compounding : 

Compounding has the potential to grow your savings at a phenomenal pace, making you wealthy over time.


3)  Diversification : 

SIP investing allows investors to diversify their portfolio across multiple asset classes and investment vehicles. By spreading their investments across different sectors, industries, and geographies, investors can reduce their overall risk and maximize their returns.

4) Long-Term Wealth Creation : 

SIP investing is a long-term investment strategy that is designed to help investors build wealth over time. By investing regularly and systematically, investors can benefit from the power of compounding and achieve their financial goals over the long run.


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Using our interest calculator

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