SIP is a systematic investment plan, it is a method of investing in Mutual Funds. SIP is a systematic method to invest where a specified amount on a monthly basis is deducted from your bank account and invested in the fund chosen by you. SIP can be weekly, monthly few funds even allow quarterly SIP.

SIP helps you build discipline in investment and it reduces the burden of bulk investment. SIP is more suitable for people who are eager to invest a small amount every month on their disposable income.

Benefits of SIP..

• Outstanding Return
• Rupee Cost Averaging
• Systematic and Discipline Investment
• Flexible

Outstanding Return

The Power of Compounding is considered 8th wonder of the world. The power of compounding makes Mutual Funds one of the most attractive investment options available today. Even a small amount invested over a long period of time can double, triple or increase even more. You cannot see the full magic in a short period of time, you must continue to invest and be patient.

It is possible to start a Mutual Fund SIP with as little as Rs. 500

Rupee Cost Averaging

It’s almost impossible to time the market; even the experts you hear on TV aren’t sure what’s going to happen next and for people like us, who have regular jobs from 9 to 5, neither we get the time or maybe unable to accumulate full knowledge, it’s difficult for us to track the market all the time. So the best solution for us is SIP. In SIP you invest every month on the same date, whatever the market is at its peak or the lowest and at the end of the term, if you look at the cost of purchasing the units, to your surprise it’s neither the lowest nor the highest, it’s “Average”.

Systematic and Discipline Investment

Since childhood, we have known how important discipline is to our lives. SIP brings it in our investment. In our busy schedule, we may miss out on some of our SIP installments if we had to invest manually. However, with the help of advance banking, you need to fill the mandate form once and your money will automatically start deducting from your account. No manual work is required for SIP.

Flexible

SIP is Flexible to choose a convenient amount to invest, you can select the investment date, the category of funds you wish to invest.

Tax saving

Mutual Fund SIP is one of the best options for people who are looking for tax savings as well as wealth creation for their future. You can invest in ELSS (Equity Linked Savings Schemes) and save taxes upto Rs 1,50,000 under Section 80 C of the Income Tax Act.

If you invest Rs. 1000 monthly in SIP how much money are you going to get?

The above table is only for illustrative purposes, Mutual Funds do not guarantee returns.