Features and benefits of SIP
SIP is an investment plan, which is offered by various mutual fund companies. You can invest by starting with a small amount periodically, which can be weekly, monthly or quarterly. Systematic Investment Plan is a flexible and easy way of investing money regularly. SIP allows you to save your money and meet all the financial goals systematically. Many people tend to apply for SIP by not knowing the proper plan or by following someone’s suggestion. It is also said that the earlier you start, the more you will gain. If you start at an older age, around 40, it will not be more beneficial. Instead, you will need to invest a more significant amount. If you start investing in your 20s or 30s you can invest very low amount and still reap better returns. You can calculate the returns which you will get at a particular age by the help of SIP calculator and then you can decide when to start investing and how much to invest.
So, have a look at these features and benefits of SIP and on this basis, take the decision of whether you should invest or not-
Features-
Every time when you invest your money, your account will be filled up by more units.
SIP is a mode of investment where a fixed amount is debited from your bank account occasionally and later it is invested in particular mutual funds.
The assured numbers of units which are given to the SIP holder are based on the current NAV (Net Asset Value).
Benefits-
SIP is not associated with any risk factors.
One of the most important factors before investing in it is the length of your investment. Even if you have bigger goals to achieve, you may opt to invest in SIP and earn on your investment.
Every month a fixed amount is invested, so there is no risk of facing the impact of market volatility-unit cost averaging.
Monthly installments are deducted automatically which helps to inculcate a good habit and makes you more committed towards your investment.
It's very flexible and convenient - you can create, update, or cancel SIP anytime.
Returns can be easily calculated with the help of SIP investment calculator. All you need to do is fill up the details like time duration, expected rate and the amount, which is fixed for investment. This is the easiest and reliable way.
Apart from the invested time and interest in it, the return on investment from SIP is generally favorable.
SIP does not force you to invest a specific amount. It is completely upon you.
No extra charges are carried out in order to start a SIP investment.
Knowing the ins and outs of an investment option is always advisable as you are going to invest your hard-earned money. SIP has been one of the easiest, safest and most popular forms of investment.