Systematic Investment Plan, which is also known as SIP in its abbreviated form, is a well-thought investment plan under which an individual is able to put an insubstantial sum of money in mutual fund schemes at fixed intervals, say monthly or quarterly. SIP aids a person in saving and ploughing money in a methodical way. At present, multifarious SIP schemes are obtainable, and zeroing on the suitable one can get a bit strenuous. Because of this, it’s wise to seek the help of a SIP advisor. The SIP consultants in Delhi have extensive understanding and awareness regarding the pertinent financial tools which can generate productive returns with an insignificant association of risk.

Benefits of Investing Through Systematic Investment Plan

• Useful – SIPs cater to the convenience of people. By availing the auto debit provision, the money automatically gets debited from an individual’s account without having the need to visit the bank in person, thus shrugging off any concern pertaining to the failure of depositing monthly installments.

 Advantage of Power of Compounding – The sooner you begin putting money into SIP, the better would it get, as over time, it would result in an accumulation of wealth. The best part with SIPs is that you can start investing with as insignificant an amount as 500. In order to obtain the complete advantage of power of compounding, SIPs must be done for a period of 10-15 years.

•  Rupee-Cost Averaging – This is an effective investment technique that wipes out the requirement to time the market. One simply has to keep investing a particular amount of money on a fixed time interval for a long-term basis. Now, as the money ploughed is fixed, an individual would purchase more units while the price is minimum and small number of units while the price is maximum.
• Tax Benefit – Either through lump sum or Systematic Investment Plan, putting money in mutual funds provides the individuals with several benefits. For instance, the long-term capital gains obtained in equity funds are now subject to only long term capital gain tax of 10% of your gains after 31st January 2018. When it comes to debit funds, 20% tax is imposed on the long-term capital gains, and that too post the permitting of indexation benefit.
•  No Need to Time the Market – The investors perpetually remain in a quandary as to the ideal time for investing money. It’s pretty much difficult for one to gauge the pinnacle and bottom of the proceedings of the market. However, SIP being a regular investment that takes place across market cycles, it possesses the capability of resolving this conundrum.

Several SIP advisors are putting forth variations of the Systematic Investment Plan to furnish the investors, who choose to invest money in SIP, with superior returns.