What is SIP?
Systematic Investment Plan or SIP, as it is known in its abbreviated form, refers to the means availed of for ploughing money in mutual funds. It entails an individual to invest a particular sum of money into mutual funds at fixed intervals, on monthly or quarterly basis.
How Does SIP Work?
A SIP is a simple investment instrument for wealth creation. The money that you would invest, gets automatically deducted from your bank account, and is invested in a certain chosen mutual fund plan. As per the present market rate, you’re apportioned specific Net Asset Value for that day. Each time you’re putting money; extra units of that scheme are bought at the market rate, which is further credited to your fund. There’re a plethora of SIP schemes available and choosing the apt one can be quite a cumbersome and mind-boggling job, especially if you’re new to this investment domain. Hence, it’s advisable to resort to a SIP advisor who’d aid you in selecting the best scheme assessing your risk appetite and financial objectives. The SIP consultants in Delhi possess profound knowledge pertaining to the apt fiscal tools that can produce profitable returns with least involvement of risk.
Benefits of Choosing Systematic Investment Plan
- Putting the money in mutual funds through SIP at the commencement of the stated month will give you freedom to splurge the remaining salary, and hence would rid you of the twinge of conscience for not saving or making use of the money.
- The benefits of compounding and rupee cost averaging in SIP, makes it an excellent tool to give good returns after a long-term investment.
- SIP, being a recurrent investment taking place across market cycles, liberates the investors from the conundrum of comprehending the correct time to plough one’s assets
Several SIP advisors in India are putting forth variations of the Systematic Investment Plan to furnish the investors, who choose to invest money in SIP, with superior returns, like SIP Top up and SIP Insure to compliment goal based SIP for children education, retirement savings and wealth creation etc.
For more information, visit https://www.hexagonwealthadvisors.com/