If you are salaried and are able to save a few bucks every month, then SIP is a great strategy for you.
SIP Mutual Funds: Corona epidemic has told us the importance of aving plans. Only saving in need comes in handy. Not only big savings are useful for you, even small savings can fulfill big dreams. So focus on saving and start saving small.
Here we are discussing about some such investment plans, with the help of which you can double or triple your money with a saving of only 500 rupees a month.
Fulfill big dreams with small savings
The first name in the small investment plan comes about SIP. Systematic Investment Plan ie SIP is the best way to invest in equity mutual funds. You can also start with a small investment of 500 rupees every month in SIP.
SIP Investment Plan
By investing in mutual funds through SIP, you expect better returns in the long term. Investing through SIP reduces the risk associated with market fluctuations. When the market is booming, you are allocated fewer units and when the market falls, you get more units for the same amount of your investment.
Regular investment
Regularity is necessary for investment. And through SIP, you can maintain regularity in your investment. According to your convenience, you can decide the date of investment. With the help of SIP, you get into the habit of regular investment.
If you are salaried and are able to save a few bucks every month, then SIP is a great strategy for you. Every month a few thousand rupees are deducted from your account and in the long term, a lot of capital is collected from it.
SIP Investment Return
If at any time the net asset value of a mutual fund (Net Asset Value-NAV) is higher, then at that time you will get less units on investment, but if the NAV of the fund is less at that time then more units are available in the same amount. In this way, with the help of SIP, your investment goes on average.
Compounding interest rate
The best aspect of SIP is that it benefits from compounding. That is, you get returns on the returns you get every month. Because of this, your capital grows very fast.
Financial Goals and Strategic
You can connect SIP with your financial targets, such as buying a house, raising funds for children’s education, raising money for post-retirement etc. Set the target of everything and then guess how much money is needed for that target. Then the investment should be fixed accordingly.
SIP Mutual Funds
If you think that your child’s wedding will cost 10 lakh rupees and you are planning to marry her after 15 years from now, then you will have to raise 30 lakh rupees for this work. Inflation will continue to grow at the rate of eight percent per annum. If you want 30 lakh rupees in 15 years, then you have to save about 6500 rupees every month. If you get 12% return on it. Start with a low amount first and then increase the amount a little bit later. With increasing income every year, increase the Amount of SIP too.
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