Dreams can only be achieved if you work towards them. Even
building wealth is no different. A Systematic Investment
Plan (SIP) helps you do just that.
SIP
is a method of investing a fixed sum, regularly, in a mutual
fund scheme. SIP allows one to buy units on a given date
each month, so that one can implement a saving plan for
themselves. The biggest advantage of SIP is that one need
not time the market. In timing the market, one can miss the
larger rally and may stay out while markets were doing well
or may enter at a wrong time when either valuation have
peaked or markets are on the verge of declining. Rather than
timing the market, investing every month will ensure that
one is invested at the high and the low, and make the best
out of an opportunity that could be tough to predict in
advance. Watch the video to understand how SIP helps.
Advantages of Systematic Investment Plan
-
Disciplined approach to investments
-
No need to time the market
-
Harness the power of two powerful Investment
strategies:
-
Rupee Cost Averaging :
Benefit from Volatility By investing regularly,
you can take the advantage of market dips without
worrying about when they’ll happen. Thus you end
up buying more units when the price is low and
fewer when the price is high, which can mean a
lower average cost per unit over a period of time.
-
Power of Compounding :
Small investments create Big Kitty over time When
you invest regularly through SIP and invest for
the long term, the benefits are magnified by the
compounding effect. Your money grows over time as
the money you invest earns returns. And the
returns also earn returns, i.e. in effect your
actual investments over time plus returns get
compounded over the years which can grow into a
large sum over a period of time.
-
Lighter on the wallet
-
Reap benefits of starting early
How SIP works?
An investor can invest a pre-determined fixed amount in a
scheme every month or quarterly, depending on his
convenience through post-dated cheques or through ECS
(auto-debit) facility. Investors need to fill up an
Application form and SIP mandate form on which they need to
indicate their choice for the SIP date (on which the amount
will be invested). Subsequent SIPs will be auto-debited
through a standing instruction given or post-dated cheques.
The forms and cheques can be submitted to the office of the
Mutual Fund / Investor Service Centre or nearest service
centre of the Registrar Transfer Agent. The amount is
invested at the closing
Net Asset Value
(NAV) of the date of realisation of the cheque.
How can you plan for your SIP?
-
List down your dreams and goals and work out a plan to
achieve them through SIP. You can try our
Family Solution Tool
-
Ascertain the monthly/quarterly SIP required to
achieve your goals. You can try out our
Return value Calculator tool.
-
Identify the scheme(s) in which you would like to
invest and complete the formalities for SIP investment
including forms and cheques/ investing online.
-
Invest for the long term as the twin benefits of power
of compounding and rupee-cost averaging work through
different market cycles
-
Diversify your investments for your dreams through
multiple SIPs in different schemes to optimise returns
as per your needs.
You can also try
Systematic Investment Planner Tool
to invest fixed amount every month and achieve your desired
dream.
So, dream more and achieve much more. Start investing
through a SIP today and work towards achieving your dreams.
Disclaimer:
Any information contained in this article is only for
informational purpose and does not constitute advice or
offer to sell/purchase units of the schemes of SBI Mutual
Fund. Information and content herein has been provided by
CRISIL Research, a Division of CRISIL Limited, and is to be
read from an investment awareness and education perspective
only. The views / content expressed herein do not constitute
the opinions of SBI Mutual Fund or recommendation of any
course of action to be followed by the reader. Investors
should consult their financial advisers before taking any
investment decision.
Mutual Fund investments are subject to market risks, read
all scheme related document carefully.
)
)
-197095f6910be4204af609b63a23bef97)
)
