Top News

Benefits of Long Term SIP: In today’s era, SIP has emerged as the most accessible and effective means of wealth creation which every investor can adopt. Investors who understand the benefits of long-term SIPs know that it does not require any special talent but discipline. This is a method of investment that reduces the risk of market fluctuations to a great extent. With regular investment, you can easily achieve your big financial goals in the future.

small beginnings big results

Systematic Investment Plan provides you the facility to invest a very small amount every month which anyone can start with. Due to this, you do not have the financial burden of lump sum investment and your capital gradually grows with the market. In long term investment, equity proves to be the best wealth creator which rewards your patience.

The magic of compounding and discipline

The biggest strength of SIP lies in its amazing power of compounding i.e. compound interest which increases over time. Initially the returns may seem a bit slow but after eight to ten years this graph moves upwards very rapidly. This method of investment works through auto-debit which inculcates a deep discipline of savings within the investor.

Benefit of Rupee Cost Averaging

When you invest money through SIP, you do not need to time the market at all. You get more units when the market falls and less when it rises, keeping your average purchase cost fairly balanced. This process is called Rupee Cost Averaging which helps in ensuring strong returns by reducing risk in the long run.

Step-up and investment flexibility

You can start your investment journey today without any delay with even a small amount of Rs 500 or Rs 1,000. With the Step-up SIP option, you can increase the investment amount by 5 to 10 percent every year as your income increases. For example, if you increase your SIP of Rs 1,000 annually, then after 30 years a corpus of lakhs can be formed.

Security and goal based investing

SIP is a completely flexible medium which you can reduce, increase or even stop anytime as per your convenience. There is a lot of transparency as the portfolio and NAV are updated daily under the strict rules of SEBI. You can easily accomplish big goals like your children’s education or retirement by keeping them on auto-pilot mode.

Right timing and consistency of investment

Investing consistently for a long period reduces the risk and increases the chances of building huge wealth manifold. The real magic of SIP lies in time consistency and patience which every common man can adopt as per his savings. Start your big wealth creation journey with one small step today towards strong financial security for the future.