What is an SIP

Benefits


  1. Hassle free investing
    Linking your SIP to a goal is the key to building wealth. Once you arrive at an amount you would like to accumulate as your financial goal, the rest follows easily - your investment horizon, SIP amount and the frequency. It is very simple and straightforward to operate an SIP. After the initial account opening it can work automatically through a standing instruction.

  2. Invest small amounts
    SIPs can be started with as little as Rs 500 each month. SIPs provide flexibility in choosing the amount you want to invest and you can choose your frequency as daily/weekly/fortnightly or monthly.


  1. Freedom from timing the market
    Equity markets are volatile and typically move in a cycle. They go up, peak, go down, bottom out and then another cycle begins. You want to buy low and sell high but you are unable to figure out the low and the high. SIP allows you to invest smartly - buy more units at lower NAV and vice versa. It makes the market cycles work in your favour.

  2. Benefit from the Power of Compounding
    Compounding is the ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings thereby giving a snowball effect to your wealth creation. The longer the horizon, the larger the benefits. Give your investments the long time period they need to compound and watch them grow into a sizeable corpus with the help of a SIP.

Tips for SIP