Achieving Financial Success with the Best Systematic Investment Plan

Posted by sipnowbsl on February 22nd, 2018

We all have financial goals to help us live a life that we’ve always imagined. But be it buying a home, a car, retirement planning, or education or marriage of kids, it is only with the help of a right investment approach that you can achieve these goals. There are now several investment options that you can consider to achieve financial success. However, SIPs or Systematic Investment Plans are one of the most-convenient, time-tested, and highly rewarding options.

If financial success is what you are aiming for, we’ve created a list of five reasons that make SIPs the right choice for you.

1. Start investing early

To effectively meet your financial objectives, it is very important to start investing as early in life as possible. While most of the investment options, like the stock market or real estate, require a sizable lump sum investment, you can start investing in the best systematic investment plan with just Rs. 1,000.

You get to select the amount that you’d like to invest, and also pick the interval at which you want to invest like weekly, monthly, quarterly, half-yearly, or yearly. Moreover, you can also adjust the SIP amount whenever you want. By starting your investment early in life, you’ll surely be able to get a step closer to your goals.

2. Beating inflation

In the last 18 years, the inflation in India has been around 6.43% on CAGR basis. As an investor, it is important for you to look for an investment option that can comfortably beat this inflation figure. As per the analysis of the last 20 years, equity markets have the ability not only to beat inflation but also generate additional returns.

You can look for a top equity fund and start a SIP in it to make sure that your investment can generate positive returns even after the inflation and tax adjustment.

3. Be a disciplined investor

To achieve financial freedom at the right time in life, you’ll surely be required to be a disciplined investor. Irrespective of the market condition, you should continue investing and not let fear to affect your decisions. As compared to directly investing in the stock markets or making lump sum investment in mutual funds, SIPs are able to make you a better investor.

As you’ll be investing a fixed amount at regular intervals, there is no need for you to consider the market condition as the ups and downs will balance out in the long run.

4. Compounded returns

When you start investing in mutual funds through SIP early in life, one major benefit that you’ll experience is compounding. With regular investments, you’ll get to earn returns on your already generated returns to maximise your profits.

This compounding can have a significant impact on your savings in the long run. Compounding is popularly known as the eighth wonder of the world, and you get to take its advantage with SIP investment.

5. Easy to maintain and operate

The investment option you select should be stress-free and easy to monitor. All the AMCs now have their websites where you can easily track the performance of your portfolio. The profits and losses are updated on a daily basis to ensure maximum convenience.

Moreover, you can also sell the units anytime you want or buy more online with only a few clicks. Be it getting in touch with an investment expert or knowing more about different types of funds; everything can now be easily done online.

Tiny drops of water can accumulate and turn into a mighty ocean. SIP investments work in a similar fashion to help you achieve financial success and effectively meet all your financial goals. Start looking for the top funds that suit you and your investment objectives to start SIP investment as soon as possible.