Why Keep Your Investments Simple?

Pocket-friendly

It is an easy way to start your investment in mutual funds for a long term. One can start a systematic investment with just Rs 500 at a time. This makes mutual funds investing suitable for every kind of individual who may be earning more or less, irrespective of it, one can fulfill their financial goals very easily.

No need to time the market

The systematic plan makes your investment work through market cycles for better returns. Therefore, while doing investments through SIP, understanding the market volatility during the initial stage can be avoided.

Helps achieve financial goals

Financial goals can be aligned very easily, whether it is the short-term or long term. Since investment can be done in any range through SIP mode, one can easily calculate the monthly need of investing money assuming a certain rate of returns as per the risk appetite of an individual and accordingly, one can make an investment in the desired mutual fund scheme which can help them achieve their goals in reality.

Power of compounding

The overall value of corpus multiplies over a period of time with interest earned on previous interest and principal. For example, if you invest Rs 10000 a month over a period of 20 years assuming an interest rate of 12%, you will be able to generate approximately Rs 1 crore by saving just Rs 24 lakh throughout the tenure.

Benefits novice investors

SIP has an inbuilt mechanism to mitigate risks. While entering into mutual funds investing for the first time, it is suggested as one of the best investment strategies to start your investment.

Inculcates financial discipline

Investing through SIP in building a disciplined approach by forcing to save and invest regularly. It helps you dedicate your savings towards a financial goal over a long period of time.

Good investing strategy for novice investors

Investors who are new to equity investing and also, who are risk-averse can go through this mode investing their money.