What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan or SIP is a tool to invest money in mutual funds on a regular basis.
Why Systematic Investment Plan (SIP)?
Systematic Investment Plans helps you to inculcate the habit of saving and building wealth for the future. It is an ideal path for someone to plan for the goals and invest regularly to meet those goals.
What are the benefits of Systematic Investment Plan (SIP)?
- Rupee cost averaging- No need to worry about timing the market and when to invest, how to invest etc as systematic investing reduces the risk of market volatility significantly.
- A systematic investment plan (SIP) is an effective means to beat market volatility and benefit from the enormous power of compounding over time.
What is the frequency of Investment?
SIP allows you to invest a pre-determined amount at a regular interval; Weekly, monthly, quarterly or yearly.
Which frequency is the best?
Monthly, the problem with other frequencies is that such frequencies do not capture the market movements adequately.
How much can I invest?
You can invest as low as Rs. 1000/- on a monthly basis. Typically one should diversify into 2-3 mutual funds schemes based on the RISK PROFILE and TIME HORIZON
How much tenure should I go for?
Though the minimum tenure in most cases is 6 months to reap maximum benefits out of SIPs; Investors should ideally invest via SIPs over at least 3-5 years.
What is the mode of Investment?
Your money is auto-debited from your bank account and invested in a specific mutual fund scheme. You are allocated a certain number of units based on the ongoing market rate (called NAV or net asset value) for the day.
Is SIPs flexible?
Yes, there is no compulsion. Investors can discontinue the plan at any time. One can also increase/ decrease the amount being invested.
When should I start?
The rule for compounding is simple – the sooner you start investing, the more time your money has to grow and earn profits.
We all have various dreams that we want to realise from owning a car to going on a vacation. Besides these, we also need to plan for Children’s Education, their Marriage, and our Retirement. SIPs are the best way of investment to turn your dreams into reality.
‘Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing’
For more details on SIPs drop an email on info@equestcapital.com! Equest capital is there for you for all your investment needs. #JoinOurCircle #EquestCapital