A lot of people today nurture the thought of contributing to mutual fund investments, thereby exploring an entirely distinct means of earning money by availing such plans. Various online mediums offer the investors with a plethora of alternatives to putting their hard-earned money. Moreover, unlike the bygone days when individuals used to shudder at the mere thought of investing, the investors today, especially the novice, look forward to have a brush with this investment sphere, thus being a part of the saving schemes. Amongst the wide range of investing methods, the Systematic Investment Plan, better known as SIP, has gained widespread prominence. And why not? This popularity of SIP has its fair share of reasons too. Before delving into the factors, let’s take a look on what exactly is SIP?

What is SIP?

SIP (Systematic Investment Plan) is an investment plan that allows the investors to invest a particular amount of money on a quarterly or monthly basis. This is especially convenient for those people who wish to sink a hefty amount, but due to its unavailability, aren’t able to invest the entire amount all at once. Under Systematic Investment Plan, the investors can automate their monthly mutual fund investment undertakings. They, therefore, put meager amount over uniform intervals of time to purchase mutual fund units. In the ensuing section, we’ll discuss the benefits that one can avail of by investing money in SIP.

Advantages of Systematic Investment Plan

• Cost-averaging – SIPs aid the investors cut down their regular investment cost. The price of the mutual fund plans vary each month. Hence, the MF units are attainable at variegated costs each month. Thus, when an investor ploughs a certain sum of money each month, they can purchase the different values of the mutual fund units.
•  Discipline in investing – In a Systematic Investment Plan, the investment procedure is done through automation. This way, the investors never miss out on any investment. This feature inculcates discipline in the investors, thereby aiding them achieving their financial objectives.
•  Minimum Investing – Perhaps the most attractive aspect of SIPs is that it can be begun even with as less an amount as 1000.

It’s recommended to rely on a SIP consultant who’d assist you in choosing the ideal plan evaluating your risk appetite and financial aims. The SIP consultants in Delhi bear immense comprehension regarding the pertinent financial tools which can bring off good returns with minimum involvement of risk.