Systematic Investment Plan (SIP)

Everyone wants their money to grow to accomplish their financial goals but the risk of losing the hard-earned money has confined people in a “let it be” zone. Money won’t grow sitting idle in your account.


Don’t worry, there is a way to invest your money with low risk and high returns. Confused? It is none other than a Systematic Investment Plan (SIP) in mutual funds.


As a beginner, you need to invest your money in a scheme with low risk and high returns. And SIP in Mutual Funds is the one that can provide you with such comfort.


What is a Systematic Investment Plan (SIP)?

It is a method of investing in mutual funds. A particular amount of money (minimum Rs. 500) is invested every month to mutual funds for the period you want to invest. It involves very low risk and due to this reason, in little time, it has become the top preference of newbie investors.


Reasons to invest through SIP:

Diversified Investments- Investing through SIP in mutual funds offers you an advantage to invest in different assets. It reduces the risk and gives you higher returns. As a newbie, you don’t want to lose money in the first go.


Therefore, Investing in SIP does not only give you risk-free returns but also provides a diversified portfolio.


Compounding Effect:

 SIP in mutual funds is much more profitable due to the compounding effect. Compounding effect means the returns on reinvestment. The returns you get from your investment, those returns are reinvested and this way, you get returns more than you estimated.


Rupee Cost Averaging:

 This factor plays a big role in fetching maximum returns. Due to fixed regular investment, it averages the amount of one unit.


When the market goes up, you buy less; when the market goes down, you buy more. It is also one of the things intelligent investors do and Guess what? You don’t even have to engage with daily market updates. It all happens itself.


Conclusion:

Risk follows investment; they said. Lower risk can give you higher returns; they never said.


Investing in SIP is easy. You don’t need to take daily market updates to invest. Start your SIP once and enjoy stress-free high returns.