Many of you may have heard the term SIP or Systematic Investment Plan, but do not understand its real meaning. If you are interested in mutual funds, SIP is the best way to invest your money to achieve your investment objectives. You can invest a fixed amount regularly to your mutual fund schemes by opting for this investment tool. Mutual Funds SIP are a great tool that helps people like you to invest in mutual fund schemes regularly to fulfill your dreams. If you are interested in SIP, it is important for you to get prepared before investing your money. SIP is also working just like a mutual fund scheme, and your money is handled by the experts in the money market. However, get an idea about how your money grows if you invest in SIP.
Mutual Funds SIP – a planned investment method
Mutual funds SIP are a planned investment method which helps the investor to invest money to a particular mutual fund scheme on a weekly, monthly or quarterly basis based on his or her convenience. Since the auto-debit facility is available in SIP, a fixed amount is deducted from your savings account every month to invest in the mutual fund scheme that you choose. A great advantage of SIP is that it allows you to invest in small amounts, but you will be able to reap big returns through this plan. It is a disciplined way to invest, and you can start a sum as low as Rs.500 to invest in SIP.
Advantages of SIP
Affordable and flexible investment options are the main advantages of mutual funds SIP. It is always possible to start your SIP investment with a very small amount. You can also increase the sum that you invest when your earnings grow. Another advantage of investing in SIP is that you can discontinue it and withdraw the entire amount that you invest without paying any penalty.
How to start a SIP investment
If you want to invest in SIP, the first thing that you need to do is to set specific but attainable financial goals. It is also important to set a timeline to get the money. Another thing you need to consider before choosing a SIP mutual fund is the decision of how much you need to invest. You can get an idea about the money you need to invest with the help of a SIP calculator. Seek the help of a mutual fund advisor to choose the right plan that fulfills your dreams and meet your needs.