Top Reasons to Invest in SIPs

Looking forward to making a worthwhile investment? Thinking about whether the SIP way is the best for you? Well, if you are still in doubt and don’t want to end up making the wrong decision, here are a few reasons why you should invest in SIPs. If you are completely unaware of the concept of SIP, know that Systematic Investment Plan or SIP is one of the most popular ways to invest in mutual funds. SIPs are an ideal choice for people who wish to start small and gradually build a corpus in a planned and systematic way. As far as the benefits are concerned, there are multiple. 

Top Reasons to Invest in SIPs

Below mentioned are the major reasons for an investor to choose SIPs:

1. With SIPs, most mutual fund schemes give the freedom to start investing a smaller amount as little as Rs. 500 per month.People who have just started working and can invest a small amount can also start investment.

2. SIPs are highly flexible and come with the freedom to adjust the SIP amount the way the investor wants. If a person starts investing with Rs. 500, it is not mandatory for them to keep investing the same amount.

3. An SIP investor can even stop or skip the SIP as per their convenience. Furthermore, there is no compulsion for one to make the SIP investment every month for a fixed period. One can skip the SIP even for a few months or stop the investment as and when they like.

4. SIPs help in making one a disciplined investor. Since it gives one the freedom to invest as little and as convenient, one looks forward to investing on a regular basis. Moreover, since in SIPs, an amount fixed by the investor automatically gets invested in the scheme of their choice, making regular monthly investment by oneself get elimited.

5. SIPs eliminate the requirement for one you to time the markets. All that is required is investment of a certain amount on a monthly basis no matter what the market conditions may be.

6. SIPs reduce the average cost of mutual fund units at which you buy the mutual fund units. 

7. Investors with long-term financial goals benefit a lot by starting a SIP and selecting the growth option can prove rewarding as SIPs offer massive returns in the longer run.

8. SIPs protect the investors from emotional investing without any concerns regarding the short-term market volatility.

9. Online portfolio tracking is one of the key features of SIPs. After starting an SIP, the investor receives credentials that they can use to access their account any time. Other than tracking the SIP, an investor can change schemes, start a new SIP, stop the existing SIP and do a lot more without leaving the comforts of their home. 

So, what are you waiting for? Go ahead and plan out your SIP investment today! 

You may also like to read - What Are Mutual Funds?

Life Insurance or Fixed Deposits? Which Is Better?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.