SIP – Systematic Investment Plan – is a disciplined method of investing in which a predetermined quantity of money is placed in a mutual fund scheme at a predetermined interval. You choose the amount, the start date for your SIP, and the schemes you want to invest in. Different life goals can be planned, such as the future of one’s children, retirement, international vacations, vacation homes, and so on.
Is SIP The Same as A Mutual Fund?
People believe that SIP is either a mutual fund or something else entirely. SIP, on the other hand, is a type of investment rather than a fund, plan, stock, or investment route. It’s a mechanism for investing in a fund or plan of your choosing on a regular basis.
What Are Some of the Advantages of SIP?
SIPs encourage discipline since they allow you to invest a certain amount on a regular basis. A certain sum is automatically invested at predetermined intervals. To put money to work, one does not need to devote time on a regular basis.
- You don’t need a lot of money to start a SIP, and you may start modest. To begin, a SIP of even Rs. 500 per month is adequate. The sum can then be increased depending on the aims and desires.
- You don’t have to worry about market timing using SIP. Simply stay invested, regardless of market conditions. As a result, you wind up with extra units when the time comes.
Using the SIP Calculator, you can receive accurate results. It is the first and most important step in taking measured risks. You must provide information such as the monthly amount to be set away, the duration, and the estimated return. Do you want to invest in Liquid Funds, Debt Funds, or Equity Funds to meet your needs? This technique eliminates the need to manually compute your returns, which might result in a mistake.
You Make A Well-Informed Decision
You may preview the possible returns on multiple SIPs with the same time length and investment amount by entering the interest rate into the SIP calculator. You can simply grasp how to invest in SIP after comparing the results of different SIP choices. As a result, you may select the best SIP to ensure that your Mutual Funds perform effectively and generate big returns.
Availability Is Simple
Online SIP calculators are readily available. They’re also usually free to use on most websites.
A systematic investment plan (SIP) in a mutual fund is one of the most disciplined ways to get the most out of your money. It’s the key to avoiding the problems of some of the top Equity Mutual Funds while still reaping the benefits of their high returns. SIP allows you to put a little sum into a mutual fund on a regular basis. With the aid of a SIP Calculator, you can figure out how much money you need to set away at regular intervals (weekly, monthly, and quarterly) to meet your long-term objective of creating a certain fund.