Skip to main content

Advantages of Investing in SIP

   Start SIPs Online 



Thinking about making funds for future expenditures?

Searching for a plan which will give you benefiting return?

Let me tell you one of the popular plans in recent market.

Systematic Investment Plan (SIP) has gathered a lot of attraction and there are some justified reasons behind it. It is a financial plan that helps you to create wealth, by investing small amounts of money every month, over a period of time. A Systematic Investment Plan (SIP) is a vehicle offered by mutual funds to help investors invest regularly in a disciplined manner, through small and periodic installments.

These two are simple Mantras for SIP –

Early start : The earlier you start investing in SIP, the more you will get at the end of your plan!

Regular Investments : Invest regularly in order to reap the benefits of SIP!!


So now the question arrives,


What are the advantages of the SIP?

SIP truly has so many advantages which leads people of any income group to invest in this Plan. Let us take a brief look them:

  1. 1. Can start with very small amount : One of the important advantages of SIP is that you can start with very small amount like RS. 1000/- (Around 16$). Because of this nominal amount, anyone can invest in SIP.
2. Disciplined investment : It makes you a disciplined investor. The SIP monthly amount always gets cut on the pre-set date (mostly early dates of month).In this way, you always keep that amount from your determined budget and thus the way you become a successful disciplined investor.

3. Power of Compounding : You can enjoy the power of compounding while invest in SIP, i.e. 'Interests on Interest'. For example, for your investment of Rs. 12,000 for a year with 15% interest will earn you Rs. 13,800. Now for your next investment cycle you gain interest on Rs. 13,800 and your further investments. So, you are gaining interests on interest for rest of the investment period.

4. Rupee Cost averaging : SIP safe guard you from any market conditions. If the market is down, you are getting more units and when the market goes up, you are getting little less. But in SIP your risk is minimum but the benefit is optimal. whatever happens, you will not lose!

5. The Longer, The Better : There is a saying – "The longer you wait, the bigger/better you get ". SIP is that kind of plan. If you invest in a long period, better returns are waiting for you.

6. SIP- Automated process : Investment in a SIP is an automated process, so you don't have to worry of the investment as it is taken care of automatically every month. On the early dates of the month, your money will be automatically deducted from your selected account and will be added to your SIP account.

7. SIP- Way to achieve goals : If you have any financial goals, you can now easily complete the goals by investing in SIP. Some people invest in SIP to get increased return in order to expense that money on his/her children's marriage or higher education, where some people invest in SIP in order buy anything precious like, cars or a home. SIP helps them to achieve their own goals.

8. Change your monthly investment amount : You can start your SIP with a nominal amount of Rs. 1000 and can increase the monthly investment amount later according to your goals.

9. Backup plan after retirement – SIP : You don't have to worry after retirement if you invest in SIP till the end of your career. You will be rewarded with a huge amount of return

10. No dependencies on Market timing : You don't have to wait for any time window like stock market, while investing in SIP. So, you can enjoy your time with your loved ones when your 'money earns more money'.


As you can see, SIP plays a pivotal role in today's investment market. It is the 'PEOPLE'S PLAN' for better return in future.


Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

Popular posts from this blog

Tata Mutual Fund

Being a part of the Tata group, the fund has the backing of a very trusted brand name with strong retail connect. While the current CEO has done an excellent job in leveraging the Tata brand name to AMC's advantage, it is ironic that this was just not capitalised on at the start. Incorporated in 1995, Tata Mutual Fund remained an 'also-ran' fund house for around eight years. Till March 2003, it had a little over Rs 1,000 crore in assets and 19 AMCs were ahead of it. But soon after that the equation changed. It was the fastest growing fund house in 2004 and 2005. During these two years, it aggressively launched six equity funds, two debt funds and one MIP. The fund house as of now stands at No. 8 in terms of asset size. This fund house has a lot to offer by way of choice. And, it also has a number of well performing schemes. Tata Pure Equity, Tata Equity PE and Tata Infrastructure are all good funds. It also has quite a few good debt funds. The funds of Tata AMC are known to...
Read more

UTI Mutual Fund

Even though only a few of UTI’s funds are great performers, this public sector fund house has many advantages that its rivals do not. It has a huge base of retail equity investors and a vast distribution network. As a business, it looks stronger than ever, especially in the aftermath of credit crunch. UTI is, by a large margin, the most profitable fund company in the country. This is not surprising, since managing equity funds is more profitable than debt. Its conservative approach and stable parentage is likely to make it look more attractive to investors in times to come. UTI’s big problem is the dragging performance that many of its equity funds suffer from. In recent times, the management has made a concerted effort to improve performance. However, these moves have coincided with a disastrous phase in the stock markets and that has made it impossible to judge whether the overhaul will eventually be a success. UTI’s top performers are a few index funds, some hybrid funds and its inf...
Read more

Salary planning Article

1. The salary (basic + DA) should be low. The rest should come by way of such allowances on which the employer pays FBT and you don't pay any tax thereon. 2. Interest paid on housing loan is deductible u/s 24 up to Rs 1.5 lakh (Rs 150,000) on self-occupied property and without any limit on a commercial or rented house. 3. The repayment of housing loan from specified sources is also deductible irrespective of whether the house is self-occupied or given on rent within the overall ceiling of Rs 1 lakh of Sec. 80C. 4. Where the accommodation provided to the employee is taken on lease by the employer, the perk value is the actual amount of lease rental or 20 per cent of the salary, whichever is lower. Understandably, if the house belongs to a family member who is at a low or nil tax zone the family benefits. Yes, the maximum benefit accrues when the rent is over 20 per cent of the salary. 5. A chauffeur driven motor car provided by the employer has no perk value. True, the company would...
Read more

8 Investing Strategy

The stock market ‘meltdown’ witnessed since the start of 2005 (notwithstanding the recent marginal recovery) has once again brought to the forefront an inherent weakness existent in our markets. This is the fact that FIIs, indisputably and almost entirely, dominate the Indian stock market sentiments and consequently the market movements. In this article, we make an attempt to list down a few points that would aid an investor in mitigating the risks and curtailing the losses during times of volatility as large investors (read FIIs) enter and exit stocks. Read on Manage greed/fear: This is an important point, which every investor must keep in mind owing to its great influencing ability in equity investment decisions. This point simply means that in a bull run - control the greed factor, which could entice you, the investor, to compromise with your investment principles. By this we mean that while an investor could get lured into investing in penny and small-cap stocks owing to their eye-...
Read more

Debt Funds - Check The Expiry Date

This time we give you an insight into something that most debt fund investors would be unaware of, the Average Portfolio Maturity. As we all know, debt funds invest in bonds and securities. These instruments mature over a certain period of time, which is called maturity. The maturity is the length of time till the principal amount is returned to the security-holder or bond-holder. A debt fund invests in a number of such instruments and each of these instruments would be having different maturity times. Hence, the fund calculates a weighted average maturity, which would give a fair idea of the fund's maturity period. For example, if a fund owns three bonds of 2-year (Rs 30,000), 3-year (Rs 10,000) and 5-year (Rs 20,000) maturities, its weighted average maturity would be 3.17 years. What is the big deal about average maturity then, you may ask. Well, knowing a fund's average maturity is important because it tells you how sensitive a fund is to the change in interest rates. It is ...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now