What is a Systematic Investment Plan (SIP)?
Systematic Investment Plan, or we popularly know them as SIP, are modes of investment in a mutual fund scheme, wherein you can purchase mutual fund units of the fixed price in regular intervals. This fixed amount gets deducted from your bank account at regular intervals, which you decide beforehand. SIP is ideal for those who do not want to monitor the equity market or their equity status on a daily basis. You choose the best SIP to invest in, and it will give you benefits later.
It is the best way to begin investing in the stock market, as well as one of the smartest and simplest. If you are still confused, just pick up your phone and call Wealthcare India for a free consultation. SIP requires less monitoring and is usually for people who can wait patiently for 3-5 years in the short term and for 5-10 years in the long term.
Further, SIP mutual fund gives you the flexibility to pause or stop the systematic investment plan (SIP) whenever and wherever you feel the need to do so. Hence, Mutual Fund SIPs are best when you want less monitoring and good benefits in the long term.
Why Systematic Investment Plan (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 plus accumulated interest. When you choose the best SIP to invest in, you get maximum benefits. The only R&D part on your end is finding the best SIP to invest in or you can hire the best wealth management company in India for you, who will do all the research for you.
Consider this:
If you invest 5000 monthly for the period of 30 years, your systematic investment plan (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.
Consider the following variables:
With the Retirement Calculator, you can calculate your own retirement amount depending on your age and current expenses.
This calculator will also show you if there is any shortfall in the investments and, if yes, 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.
You can use the education calculator to determine how much you should invest in your children’s education.
For example, consider the following:
Similarly you can calculate your corpus and/ or the corpus required for marriage.
Knowing the Performance of Your Systematic Investment Plan (SIP)
Knowing your SIP Mutual Fund and finding the best fund to start your SIP in are important, but understanding how your fund has been performing or has performed in the past is also necessary. You can keep a monthly track of your fund, whereas in equity, you have to keep a daily track.
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 systematic investment plan (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 systematic investment plan (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.
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.
SIPs are Flexible
When you choose the best SIP to invest in, you get the flexibility to increase or decrease the SIP amount, depending upon your financial scenario. Also, you can choose to pause or resume the SIPs. The most important aspect is that when you select the best SIP to invest in, you get the highest ROI.
If you need further advice on the best SIP to invest in, you can contact our advisor, who will guide you through the whole process. Fund performance keeps changing, and you need to have a good knowledge of the stock market before choosing the best fund that is performing the best at that time. So, it is advisable to get expert advice from someone who has been monitoring all the funds for a long time, like Wealthcare India.
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 not to get affected by the market lows. For all the above reasons, you need the best SIP to invest in, and who better than Wealthcare India can suggest the best SIP to invest in, keep track of your investment, and change it from time to time according to your goals? You have the option to increase, decrease, or choose the top-up option. To learn more, read Why Should You Invest in SIPs?
Best Mutual Fund SIP Plans
How to choose the SIP?
The SIP you choose is heavily influenced by the timeline you have for completing the goal, your risk profile, and your current financial situation. Once you’ve taken note of everything above, you can select funds-whether debt or equity mutual funds-and begin the SIP with the desired goal in mind. So, consider all the above factors and choose the best SIP to invest in. Any confusion? Call WC Securities Pvt. Ltd.; we are eagerly waiting to make your wealth grow steadily.