Systematic Investment Plan

What is a Systematic Investment Plan?

Systematic Investment Plan (SIP) is a way of investing in mutual funds that makes it possible to invest a fixed amount of money at regular intervals.”

SIP or a Systematic Investment Plan is a mutual fund investment plan in which the investor will buy the unit of the fund at a regular interval. SIP is a very popular investment plan in mutual funds. As the investor can save money regularly at a small cost, this plan is suitable for investors who cannot invest a lump sum of money at one time. SIP is similar to a deposit. The investor can withdraw his investment anytime or he can continue investing with SIP. This way the investor is assured that they will be able to build their wealth steadily over a period of time.

The main factor of Systematic Investment Plan lead up in popularity is that they are adjustable. Right from how much amount you contribute to the period, as well as the recurrence of the venture, each part of the arrangement, can be redone as per your requirements.  You can consider different account factors like your investment budget, long-term plans, and chance profile prior to beginning your SIP.

 A SIP is a good way to invest money for your long-term goals like retirement. One of the best things about a SIP is that you don’t have to worry about your investment on a day-to-day basis. Your money lies in the fund manager’s hand and he does the necessary trading for you. Another great thing about SIPs is that you invest regularly. So, you don’t have to invest a huge amount in one go. This way, you keep your risk factor low. SIPs help you invest in stocks, bonds, and other mutual fund schemes.

Advantages of Systematic Investment Plan

  • It can be said that SIP is one of the most effective and easiest ways to invest. With SIP, you don’t have to time the market which is one of the biggest advantages.
  • In fact, investing in SIP is one of the best ways to build a substantial portfolio.
  • SIP works faster than lump-sum investing, which allows one to invest in a diversified portfolio.
  • The biggest advantage of Systematic Investment Plan (SIP) is that it helps you invest regularly and systematically.  You can invest the same amount every month or week and still invest a huge sum, in the long run. 
  • The most important benefit of a SIP is that it helps you build a portfolio without worrying about the fund manager’s decision and market fluctuation.
  • By investing in SIP, you get the convenience of systematizing your investments. Your investments will keep moving even when you are not paying attention.
  •  Systematic Investment Plan (SIPs) spread the cost of investment over a period of time and thus manage to save a large amount of money.
  • SIPs are the best way of investing in the stock market as they offer a steady rate of return over a long period of time.
  • The advantage of SIP is that the investor can invest in the mutual fund and continue investing in the future without any hassle.
  • The main advantage of investing in SIP is the power of compound interest. SIPs enable investors to make the most of their money.
  • A SIP assists you with taking a trained strategy and approach.
  • It abolishes the need to time the market.
  • It’s one of the most straightforward investment plans to execute.
  • A SIP benefits you a long way.
  • It gives an extra advantage to financial investors who start early.
  • It significantly lessens market risk and the impacts of market unpredictability.
  • It likewise permits you to completely use the power of compounding for more significant payback.

Is SIP Eligible for Tax Saving?

Indeed! If you funding in tax saving ELSS mutual fund for SIP, you are allowed to save money on charges. Charge allowance can be asserted on this under the section 80C which can be equal to 1.5 lakhs.

You can also invest in mutual funds through online portals. Wealthcare Securities provides online mutual fund investments. You not just save money but also time by investing in online mutual fund investment.

Apart from doing everything online, you can also avail yourself of assisted services from us. Call us on 9810184368 or +91-11-4657 5550 (5 Lines)

Dr. Sanjay Lunia

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