Systematic Investment Plan ie SIP is the best way to invest for your goals. SIP helps in investing regularly. The average cost of purchase is achieved by investing for a long time. Here we are telling you about some ways, with the help of which you can get more and more benefit through SIP.
New Delhi: Systematic Investment Plan ie SIP is the best way to invest for your goals. SIP helps in investing regularly. The average cost of purchase is achieved by investing for a long time. Through this, gradually mutual fund investors get the opportunity to invest in different stocks. This allows them to create a diversified portfolio. Here we are telling you about some ways, with the help of which you can get more and more benefit through SIP.
Connect goals with SIP – Any investment should be for some purpose. This can be saving for retirement, child marriage, their studies or vacation abroad. Financial planners say that it is important to combine SIP with a particular goal. This helps to find out to what extent your investment has increased to meet a goal. Not only this, you also get to know how much to save every month to reach the goal. If you need 10 lakh rupees for the downpayment of the house in two years, then the SIP of Rs 15000 to 20,000 rupees every month will not work.
Increase the amount of SIP every year – SIP gives you the facility to invest regularly. However, this does not mean that you keep the SIP amount fixed and do not increase it. Your savings will increase as income increases. Especially it is necessary for the employed people to increase the amount of SIP every year as their income increases.
This means that you can target a larger target. Then even if your current income does not allow for large investment. Increasing the amount of SIP gradually has a tremendous impact on your savings. Even a mere 10 percent increase in the SIP amount can increase the savings amount by 45 percent.
Keep SIP dates separately – Fund houses have certain dates in which SIP can be invested. Whether you are planning to start SIP through the same set of funds or different funds for each target, it is better to keep the investment on different dates of the month.
This strategy will help you to maintain some liquidity in your savings account. The reason is that it will not withdraw money from the account simultaneously. Its great advantage is that you can reduce the risk of timing of the market because the money will be invested on different days.
Decision to stop SIP- The more important it is to start SIP, the more important it is to stop. If there is a target in your mind, then close it, close it. If the goal is completed ahead of time, then invest money in a more stable option. It will not be right to leave this money in the ups and downs of the market. At the same time, if you have not been able to save enough for the goal, then extend the duration of SIP.
