What is SIP Investment?
Systematic Investment Plans or SIPs are modes of investment in a mutual fund scheme, where in you can purchase mutual fund units of the fixed price in regular intervals. This fixed amount gets deducted from your bank account at regular periods, which you decide before hand.

It’s the best way of starting investing in equity market, and is one of the smart and easiest ways as well.

Further, with mutual fund SIPs, you can choose to pause or stop the SIP whenever and wherever you feel the need to do so. Hence, Mutual Fund SIPs are flexible in nature.


Why SIP?

Mutual Fund SIP offers the benefit of compounding

Interest on your investment over time gets compounded with time and what you receive when you redeem is your invested amount + accumulated interest.

Consider this:

If you invest 5000 monthly for the period of 30 years, your SIP amount will grow to Rs. 1,76,49,569, against your investment of just Rs. 1800000. Hence your investment is roughly equal to 9.8 times your investment amount.

SIP Investment Plan
Source: https://www.wealthcareindia.com/sipCalculator.php

With Mutual Fund SIPs, you can accomplish your long term goals

Sip in Mutual Funds are indeed the best tools of investment, when it comes to saving for your goals.

Wealthcare securities understands, that your goals and responsibilities of your family are indeed precious and hence, we as advisor make sure that you fulfill each of your responsibility comfortably, without any stress.

Consider the following goals and the investment required for the same:

Investment for Retirement

Retirement perhaps should be one’s primary and most important goal, as you don’t earn after the retirement, but your expenses have to be taken care of. Hence, planning for retirement in your earning years is of utmost importance and necessary.

Consider the following variables:

Retirement

Current Age

28 years

Expected Retirement Age

60

Monthly Expenses For Current Lifestyle

Rs. 30,000

Current Saving per month

Rs. 10,000

Expected Pre Retirement Return

15%

Expected post retirement return

7%

Life expectancy

85 years


Result generated with these variables:

SIP Wealth Management

With Retirement Calculator, you can calculate your own retirement amount depending upon your age and current expenses.

This calculator will also show you if there is any shortfall in the investments, if yes then how much more you should invest, in order to live a stress free life after retirement.


Investment for child’s education

Your child’s education is perhaps the next goal in the priority list.

If you start early, you can be mentally prepared for the expenses incurred.

With Education Calculator, you can calculate how would you need to invest for your chids education.

For example, consider the following:

Child Education

Child's Age today

10 years.

Start College at age

18 years

College Duration

5 years

Current cost per year

Rs. 4 lakh

Expected rate of return

12%


Result generated with these variables:

Systematic Investments

Similarly you can calculate your corpus and/ or the corpus required for marriage.


Knowing the Performance of Your SIP

Knowing how your SIP has been performing or has performed is as necessary as investment in the same.

Also, if you are about to invest and start the Sip, you should know how your shortlisted funds have performed in the past ten years. You can visit SIP performance page, for the same.


SIPs are Investor Friendly

Your SIPs have a flexible nature. Depending upon your needs and convenience, you can pause, stop, redeem and invest more as Top Up.


SIPs can be Topped-Up

You can increase your SIP amount by a fix percentage or a fix amount with respect to your income. This leads to generate more wealth in the long run.


Investment without top up

If you invest Rs. 1,000 for 30 years, your total invested amount will be Rs. 3.60 lakh, while the return will be of Rs. 27.31 lakh.

SIP Investment


Investment with Top Up

If you invest Rs. 1,000 for 30 years with an annual top up of 10%, your total invested amount will be Rs. 19.73 lakh, while the return will be of Rs. 27.31 lakhs.

Systematic Investment Plan


SIPs are Flexible

You can increase or decrease SIP Amount, depending upon your financial scenario. Also, you can choose to pause or resume the SIPs.

Hence, it’s easy to punch an SIP, and it’s easy to apply as well. You can contact your advisor as in where to invest and how much to invest, depending upon your goals.


Benefits of SIP in Mutual Funds

SIPs are indeed the best bet when it comes to investing and preparing for your future goals. With SIPs you can invest in a disciplined way. However, make sure to not to get affected by the market lows. Also, depending upon the amount required for goal, you can choose to increase/ decrease/ or choose the top up option. To know more, read Why one should do SIP Investment?


Best Mutual Fund SIP Plans

Best SIP Plans

How to choose the SIP?

Choice of SIP majorly depends upon the timeline you have for the goal completion, your risk profile and your current financial situation. Once you have a note of all of the above, you then choose funds- be it debt or equity mutual fund and start the SIP with the required amount.