7 Benefits to Invest via Systematic Investment Plan (SIP)

A Systematic Investment Plan (SIP) is an investment, where a facility proffer by mutual funds to the investors to invest in an efficient way. Each month a fixed amount is deducted from its investor’s Bank account and then put the money into preferred Mutual Fund.

The later time is completely uncertain, but this can be less intimidating when an Individual have a financial security.

When you are Juvenile it easy to find many ways of earning. But as you grow older, you realize the importance of earlier investments that gives you the financial security.

This is why it’s important to start your investment plans at a younger age.

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7 Benefits to Invest via SIP

1. Options

You get the option to choose the right Mutual Fund Scheme, the amount to be invested and the time period of investment. By investing in mutual funds you can save more in the long term. A person can start investing in Mutual funds with just Rs 500.

2. Rupee Cost Averaging

Rupee Cost Averaging is an especial feature of SIP, in which a person can purchase more units when the market is low whereas can buy more when it’s high. By using this, feather one can naturally reduce the losses and get more returns.

3. Flexibility

With SIP an individual can ignore the long durable investments such as putting money into schemes like Public Provident Fund (PPF) or Unit linked Insurance plans. That means these funds don’t have a fixed time or tenor, you can withdraw your investment as per your need. Also you can adjust the investment by increasing or decreasing it according to your wish.

4. Higher return

Investment can put their money either every week, every month, Half- yearly or quarterly for a fixed time which depends on your earnings and Financial desires. This allows investors to earn higher rate of returns at a lower investment risk.

5. Feature of Compounding

The SIP functions on the primary feature of compounding, therefore you get compound interest on your investments. That is why, when you invest a small amount for a long duration gives you higher returns than one- time investment.

6. Emergency Fund

You can’t predict future Right? Anytime you might have an urgent requirement of money. In SIP investment, you get the facility to withdraw your money as per your choice. So, it behaves as your emergency fund having a nature of an investment plan.

7. Regulated investment plans

SIP is regular investment that helps you achieve your Financial goals, it brings regulation as your invest a fixed amount each time as per your choice.

Also, in order to choose the right and more trustable and efficient financial institution that will help you in your financial plans.

Axis Mutual fund is one such asset management company comes with numerous schemes and services to assist tour financial goals. You can contact on 8108622211 or drop a Hi on the WhatsApp number 7506771113.