Do You Think Systematic Investment Plan Is A Simple Approach To Help You Achieve Your Financial

Investing What is Systematic Investment Plan or SIP? A Systematic Investment Plan (SIP) is an option where you invest a fixed amount in a mutual fund at regular intervals or we can say that it is just like a recurring deposit with the post office or bank where you put in a small amount every month. But the main difference here is that the amount is invested in a mutual fund. Once you start investing in Systematic Investment Plan or SIP, youll be amazed to learn about the benefits of investing in Mutual Fund (MF) SIP. It allows you to invest in a MF by making smaller periodic investments (monthly or quarterly) in place of a heavy one-time investment i.e. SIP allows you to pay 10 periodic investments of Rs 500 each in place of a one-time investment of Rs 5,000 in an MF. Thus, you can invest in an MF without altering your other financial liabilities. Benefits of SIP (Systematic Investment Plan): There is no need to time the markets as you invest at predetermined intervals. This spares you from investing a lump sum amount at peak prices. SIP is disciplined investing irrespective of the state of the market. If the market is high, then it will buy fewer units as the NAV (net asset Value) will be on the higher side and vice versa. Systematic Investment Plan also helps in meeting financial goals. Suppose you want to buy an asset a year from now, but you dont know where the down-payment will .e from. MF SIP is a perfect tool for people who have a specific, future financial requirement. By investing an amount of your choice every month, you can plan for and meet financial goals. Same in case of a child education, a marriage in the family or for a .fortable postretirement life. You can also avail the advantage from an investment principle called ‘Rupee cost averaging’. Since you invest fixed sums at regular intervals, you pick up more units when the prices are low and less units when the prices are high. This brings down the average cost of your units. Its all transparent & well-regulated because the mutual fund industry is well regulated both by SEBI (Securities and Exchange Board of India) and AMFI (Association of Mutual Funds in India). They have, over the years, introduced regulations, which ensure smooth and transparent functioning of the mutual funds industry. Therefore, it ensures smooth functioning of Systematic Investment Plan (MF) investment. If you want to make your dreams .e true, the first thing you have to do is wake up and invest in Mutual Fund (Systematic Investment Plan) to go a long way in building wealth over time. Whats more, if you wish to earn, spend and invest regularly then Systematic Investment Plan is the best option for you and we at unicondirect.. can provide you a platform where you can choose the investment plan that suits you most. About the Author: 相关的主题文章:

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