Why Start The Systematic Investment Plan?

[Shashank Bhaskar]

Investments are a boon for everyone, especially when they provide guaranteed returns. It becomes easy for you to invest a small amount and see it multiply over the years, along with interest. Since most investors have varying financial goals, you need to choose schemes helping you meet your priorities. Time and money are precious. So invest them in the right place to see fruitful results.

The Systematic Investment Plan is a way to invest your money in Mutual Funds in a fixed amount for a specified interval. You can begin investing with an amount as low as Rs. 500 per month. There are plenty of reasons why you should do so.

Long-term financial goals

Everyone plans something for their future, whether buying a house, educating kids, or retirement. These resolutions involve an excess of money, making it challenging to shell out all at once. However, with small and regular investments in the online Mutual Fund, you can accumulate a hefty wealth to achieve long-term financial goals.

Saving habits

Nowadays, the youth starts earning money at a comparatively younger age than a decade ago. With rising inflation, it is time for youngsters to develop a saving sense to achieve their dreams and never fall into debt. The best way is by investing in ELSS Mutual Funds. They allow you to systematically inculcate saving habits and start an investment as low as Rs. 500 per month, nurturing the practice of investing.

Meeting contingent expenses

We never know when urgency arrives, leading to a considerable amount in modern times. To meet them, you must save your income. Saving and investing a small amount over some time is helpful. The benefit of SIP Mutual Fund is that you withdraw the whole or partial amount at any time without losing the return on investment.

Create wealth

You can now create wealth to secure your future with your current income. Investing in Equity Funds from the Mutual Fund app lets you enjoy the power of compounding, meaning your interest earned gets reinvested to earn more interest, resulting in exponential growth to your return on investment.

Short-term financial goals

Systematic Investments do not have a lock-in period. You can withdraw your money at any time to meet short-term financial goals. Invest the sum as per your convenience and remove or stop as per your requirements. It makes investment easy and hassle-free. Debt Mutual Funds further diversify the underlying tax efficiency, tenures, quality, etc.

Unaffected by fluctuations

By investing through SIP, you benefit from Rupee Cost Averaging. You avoid purchasing Equity during the market's downfall, but with systematic investments, you buy more units when the price is low and lesser units when high. Hence, your investments remain protected from market volatility.