SIP
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SIP or a Systematic Investment plan is one of the best ways of investing your money. SIP’s start the process of wealth creation where a small amount of money is invested over regular intervals of time and this investment being invested in the stock market generates returns over time.SIP’s are usually considered to be a good way to invest money since the investment is spread out over time, unlike a lump sum investment which takes place all at once. The amount required for starting a SIP is as low as INR 500, thus making SIP’s a great tool for smart investments, where one can start investing a small amount from a young age. SIP’s are very widely used for investing and for meeting financial goals for individuals over time. Generally, people have the following goals in life
- Buying a car
- Buying a house
- Save for an international trip
- Marriage
- Child’s education
- Retirement
- Medical emergencies etc.
SIP plans help you save money and achieve all these goals in a systematic manner. How? Read the below section to know.
Understanding SIP Investment
Once you begin investing monthly in a SIP investment your money starts growing each day (being invested in the stock market). SIP plans ensure that your money is not only saved but it grows as well. As the value of commodities is increasing each day, don’t you think the value of your money should increase as well? Well, SIP Mutual fund do it for you.
Investors can fulfill all their goals with a SIP. Be it marriage or buying a new vehicle, SIP makes it easy for you. You can simply start investing as per your goals (short-term or long-term) and attain an increase in wealth after a certain period of time. There is a tool called SIP calculator using which you can even calculate the amount you need to invest to achieve a certain goal.
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