Systematic Investment Plans or SIP is one of the best methods of investing. An increasing number of people are taking this route to investments, thus creating a better and brighter future for them.
Below we list some of the key advantages of investing through SIP:
1. You develop a disciplined approach to savings
SIP inculcates the habit of saving in any person. Once you have decided to invest through Systematic Investment Plans, a fixed amount of sum will be deducted from your bank account every month. The contribution can be minimal as Rs 100/- per month to Rs 1000/- per month. This makes for intelligent investment as you do not feel the pinch and can collect some substantial money for future needs since these are long-term investment plans.
2. Your future dreams will become a reality
Twenty years down the line you might require money for funding your child’s education needs. SIP will help you achieve this goal as you will have saved some substantial amount in these years without disturbing your monthly budget.
3. Fluctuations in market don’t matter much
Unlike investment in share market, investing in SIP does not deter your financial prospects. If the market is down, your investment might give less return for a while but when it bounces back, the gains are all for you to reap.