The first step towards making an investment is always shaky and full of doubts. In order to be sure about your investments and to distribute the market risk with the help of steady income, aspiring investors should route their investments through SIP.
Reasons to opt for the SIP route for making investments
The boons of investing money through SIP route are plenty and are especially more effective for those people who are considering to step into the investment market for the first time.
Let’s take a look at following 7 reasons to understand why aspiring investors should invest via SIP and how it benefits them:
- Disciplined Investment Approach: The most crucial feature of opting for SIP route for investment is the opportunity to develop a disciplined investment approach over time and to form a habit of making regular investments.
- The Habit of Saving: Once a person develops a disciplined outlook towards investment, they cultivate the habit of saving their money for the same. This is probably one of the greatest benefits of investing via SIP, as the habit of saving directly helps them to cut down on their unnecessary expenses and helps them to save more.
- Affordable Investment Amount: SIP allows a person to invest as per their affordability. The flexibility to invest as low as Rs.500enables investors with limited earning and constricted scope of savings to invest their money in the market and to earn a steady income over time through a regular habit of investing. Such a low amount also allows investors to enjoy the remainder of their savings as they wish to after making an investment.
- Compounding Power: Staying invested through SIP for a long period of time ensures better yields which tend to get better over time courtesy the compounding feature of SIP. This feature makes SIP an ideal choice for aspiring investors who aim at creating a good corpus little by little.
- Achieving Dreams: It’s the long-term goals of a person which drive them to inculcate the regular habit of investments over time. The dream of purchasing a house, a car or saving up for retirement requires a big corpus; the ability to invest a fixed sum of money over a long period of time makes SIP an ideal route for achieving one’s long-term goals.
- Cost Averaging: New investors tend to be more afraid of the ups and downs of the market than experienced investors. The fact that SIP allows investors to continue their investment without being bothered about the market situation, help them to average the cost they spend per unit over time, by purchasing them at a lower price and selling them off at a profit.
- Diversification:SIP offers aspiring investors with the opportunity to invest in diversifiedinvestment options even with a small investment amount.This comforts the fear of aspiring investors and helps them to earn better over time.
Consult our fund managers to find out how you can route your first investments through SIPs and begin your investment journey without any worries.Follow Us: