Who does not want to live a lavish lifestyle? Most of us are blinded by the present income that we earn and tend to forget that we will not have the same energy levels or the time to earn as much as we do in our youth. Investment is the key to live a comfortable life. Read on to find out how a Systematic Investment Plan (SIP) can help you achieve your dreams that fit your financial needs.
The plans for Europe travel, financing your child’s education or starting your business venture can all be possible through SIP. You can invest in small amounts over fixed intervals of time and meet these goals. Fixed intervals meaning monthly, quarterly or even annually, depending on your capability.
The habit of saving:
All your life you have thought about saving but in vain. With SIP you get into the habit of saving regularly as they require you to invest over fixed intervals. Thus, you get into the habit of staying invested and get encouraged to save continuously.
Regarding the amount to invest, SIP gives you flexibility. It is a convenient way to invest as per your financial needs. A SIP now starts as low as 100. Further, you can redeem your open-ended investment as and when you wish to.
Wealth with compounding:
SIP would yield favorable returns if you chose to stay invested in the market. It helps to benefit you through the power of compounding. If you choose to invest in a systematic investment plan always aim at a longer-term perspective. As you think about investing for long, your risk somewhat tends to decrease with better returns. Further, by the power of compounding we mean that everytime you invest in SIP you either gain more profits or gain more units of that fund. In both ways, you gain, and this is the power of compounding.
Safe Exposure to stock market fluctuations with SIP:
Through the plan, you stay regularly invested in the market, and even if the market is falling, you can hold more units of that fund. If the market is rising, you remain in profits because your purchasing power had increased when the market was falling. In simple terms, by investing in SIP, you benefit in both situations when the markets fall or rise.
So when you think about starting your journey into investments think about heading to a financial planner. A financial planner is a professional who acts as an intermediary in helping you achieve your investment goals. In fact, they help you invest according to your risk-taking capabilities and help you allocate your investments to achieve your long-term goals.
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