A unique goal based investment programme through a Systematic Investment Plan (SIP). Investors in this programme have the flexibility of choosing a monthly investment amount, as well as the investment duration of their choice. We would enable the investors to plan for their goals without needing to review, re-invest, or for that matter, time the markets.
SIP Returns /Performance.
What are Systematic Investment Plans?
Under this plan investors invest a specific amount for a continuous period, at regular intervals. By doing this, the investor has the advantage of rupee cost averaging and it also helps him to save, a fixed amount each month, compulsorily. When you opt for SIP, you automatically participate in the market swings. Your amount of investment remaining the same, you buy more number of units in a declining market and less number of units in a rising market, so that you do not panic in turbulent market conditions. As said earlier, SIP results in rupee cost averaging, which means that, when you invest consistently the same amount at regular intervals, your average cost per unit will always remain lower than the average market price, irrespective of how the market is – rising, falling or fluctuating. Where as this will not be true for a one-time investment. An SIP investor gets phenomenal rate of return compared to a one-time investor. Anyone can enroll for this facility by starting an account with (minimum investment amount) and giving 6/12 post-dated cheques of periodic investment based on one’s convenience. It is very easy to become a systematic investor. All you need to do is plan your savings effectively and set aside some amount of money every month for investing in a fund – ideally a diversified equity fund or balanced fund, since SIP is a long-term investment plan. The procedure involved is also very simple. All you need to do is, give post-dated checks to the fund house. There is another advantage for the investor. He is at a liberty to enter or exit from the scheme whenever he wishes to, depending on the market conditions. So, if you want to stay calm and sail smoothly in turbulent times go for Systematic Investment Plans.
SIP Calculator: Click here for SIP Calculator in Excel by Sanriya.in
What will be the value of your investment if you have invested Rs.10,000/- every month through SIP?
Hence it pays to start investing early and regularly in life.
There is always a “good reason’ for not investing, but there is actually an even better reason to start investing right away. In fact, starting sooner rather than later, is one of the best investment decisions you can make. The key to building wealth is to start investing early and to keep investing regularly. These regular amounts of savings, no matter however small they may be, will possibly go a long way into creating a substantial amount of wealth over a long-term. If you invest R1000 per month into a Mutual Fund with an asset allocation of 70% in equity fund and 30% in income fund (an aggressive approach), which may possibly generate a return of 13%. The graph below show the wealth you would build by the time you retire at an age of 60 years depending upon when you start investing.
Thus we see how big difference it makes if you start investing when you are 25 or when you are 30… almost double or a loss of Rs 41.02 lacs. While waiting for another 5 years would mean a loss of Rs 21.49 lacs.
Click here for SIP Calculator in Excel by Sanriya.in