SIP (Systematic Investment Plan) is a new and better way of investing money in mutual funds. This enables you to invest a specific sum of money on a regular basis thereby mitigating the inconveniences that were being faced by you earlier. Below have been mentioned 5 reasons to invest in SIPs which are a must for a beginner.
Make way for SIPs
- Essence of minting money: The aspect of early saving is central to SIPs. The earlier you start saving, the better will be impacts on your accumulated wealth. Therefore, the longer will be the duration of your SIP the better will be the chances of your investments.
- Highly convenient: Sick of elaborate paperwork? Then ease yourself with SIP investments that comprise of a simple registration online and thereafter the funding takes place.
- Integrated approach of investing: Regular funding is directly linked to an efficient financial planning and leads to the ultimate goal of earning profit. Investing in smaller amounts is always preferable over investments through lump sum amounts.
- Additional pros of diversified investments: The major advantage of investing in mutual funds through SIP is that the small amounts get spread throughout various holdings thereby minimizing your risk and escalating the corresponding gain from them.
- Prefer SIP over FD any day: FDs lack the flexibility of investment, diversification and various tax-related benefits. SIP’s have advantage of rupee cost averaging and power of compounding along with diversification and favorable taxation. In order to know more contact SIP consultants and fixed deposit consultants from a reputed financial advising company.
So, begin with the research today!