The Benefits Of Investing In A Mutual Fund Scheme Through An SIP

The Benefits Of Investing In A Mutual Fund Scheme Through An SIP

SIP or the systematic investment plan is a way to invest in mutual fund schemes. This is not a lump sum payment but regular payments to be made at equal intervals. The investor can choose the period of investment which could be as low as a day or spaced apart as quarterly.

The SIP lets one invest into the fund in a recurring manner. The amount of the SIP gets debited from the investors account as per the time period is chosen by him. This helps to build financial discipline and the investor when invests regularly sees his wealth grow.

The benefits of starting a SIP

An SIP investment is a preferred mode of investment for those who cannot time the market. This is because it helps you to average out your purchases. The benefits of investing into SIP are:

  • It helps in rupee cost averaging

The this means that when the market is volatile then the investor does not have to get worried. The SIP lets they invest regularly in the market and thus you can buy the units at regular time period irrespective of what the market is doing. So you buy when the market is at a high and buy when the market is at a low. This helps you to average out your investments.

  • The power of compounding

Compounding said to be the eighth wonder of the world. This has many benefits and when you invest in small amounts but regularly your money gets reinvested and grows to a big amount

  • SIP lets you save in a disciplined manner

SIP investments instill discipline and thus you are now committed to save regularly and build your wealth

  • SIP gives you the flexibility

You can choose the amount that you want to invest as well as the time period of the debit from your account to buy the SIP units. This means that investing in SIP is very flexible

 

  • Investing in a SIP is hassle free

You do not have to depend on anyone to start a SIP account. Just open one online and then give the standing instructions to your bank for the fund house to debit the SIP amount each month.

SIP is a great way to invest in the market and it is beneficial for those who are not knowledgeable or do not have the time to track the market. It is also the best option for those who have just started to invest in the market through Qprofit.