What To Expect When You Opt For SIP
SIP investments in India is considered one of the best ways to invest in mutual funds and to meet your investment goals in an easy and consistent manner. This is because:
- SIP or systematic investment planning is easy to understand and manage for individuals who are new to the concept of investments or mutual fund investments
- SIP investments can be as little as Rs.500 and you increase your SIP amount when you feel comfortable or have the funds
- You can make, manage and track your investments from the comfort of your smartphone
- It is easy to compare various mutual funds online and start your SIP scheme after making an informed decision
- You can withdraw your SIP investments at your convenience since most SIP-based mutual fud investments in India, except for tax-saving mutual funds, do not require any minimum tenure commitment
In fact, here’s what you can expect in detail when you opt for SIP investments in India:
Stress-free investment discipline
One of the biggest advantages of SIP funds or smart SIP is that it allows you to invest regularly on a monthly basis without delay. This is because you can opt for automatic ECS of a specific SIP amount from your bank account. Such smart SIP or regular investment in SIP fund offers hassle-free investment and convenience.
Since regular investment is one of the key features that impact your long-term investments and corpus, several salaried as well as self-employed individuals opt for smart SIP to benefit from a good investment discipline.
Returns that benefit from law of averages
One of the key considerations when making an investment is always returns. When it comes to SIP funds and smart SIP, mid to long-term returns are insulated from high market-linked volatility. This is in the case of SIP investments in equity-linked mutual funds. It is so because you are investing every month, irrespective of market highs and lows. This ensures your overall returns over a span of few years reflect the long-term trend and not adhoc highs or lows. It not only increases the chances for balanced returns, but also saves you from market-related financial and emotional volatility.
Goal-based investment corpus
Lastly, one of the major features to expect when you opt for SIP funds or smart SIP in India is that you can link it to your goals. Confused? Don’t be. Typically, you are investing to meet a specific goal such as retirement, child’s education, medical emergency corpus, and so on.
When you opt for smart SIP, you can use a calculator-led SIP scheme to understand how much you actually need to invest monthly to meet your goal. Such a calculator considers your corpus needs, inflation rates, tenure of investment, and time of corpus requirement. Hence, when you opt for such calculator-led SIP scheme, you are not simply parking some cash for future safety, but actually getting closer to your goals.
Watch: Secure your Childrens Higher Education with SIP investment
Hence, when you opt for SIP funds in India, you can expect a host of investment features that are unique to this form of investment instrument. Most importantly, it is preferred by investors since it offers great flexibility, convenience, transparency, and goal-based investment. Additionally, depending on your requirements, you can even choose to opt for mutual funds that offer tax-free refunds.