A systematic Investment Plan allows you to invest a small amount at regular intervals in Mutual Funds. You can skip the SIP installment and continue with the following month without incurring additional charges.
Benefits of going for SIP:
Power of compounding: The profit earned from the monthly SIP is invested in your investment, thus accumulating higher profit at maturity. This way, you garner greater corpus.
You can start with a small amount: SIPs are easy on your pocketbook. As the financial situation and requirements dictate, you can increase/decrease your monthly SIP amount. You can even skip the payment if there’s a short-term financial crisis.
Offers flexibility: SIPs offer investment flexibility as one can start or stop them anytime. You can skip the installment and adjust the amount as per your financial status.
Enjoy the benefit of Rupee Cost Averaging: RCA allows you to buy more units when the market is down and buy less when it’s up. As a result of SIPs, you can gain higher returns at every market correction, reducing the investment cost of your portfolio
Inculcates investment discipline: Regular monthly payments inculcate the habit of maintaining your investment portfolio. By setting auto-debit from your bank account, you imbibe an investment discipline.
For more information on investment assets, you can rely on Future Value, a pool of financial experts that can guide you through this and help you in your investment journey.