SIP: The Best Tool for Creating Wealth

The limited income that
we earn these days often falls short to take care of our financial hopes and
dreams after meeting the basic requirements. The little money left at hand
after meeting all the necessary expenditure feels too inadequate to even
consider the possibility of investing it. Even though it may undermine the
dream of creating wealth, it actually makes it even more important to generate
wealth in the hope of living a financially secured life ahead.

In the light of it, today
we will discuss how investing in SIP can help investors generate wealth even
with limited savings at hand.

Reasons why SIP is
the best investment for creating wealth

In order to create sufficient wealth to have a
comfortable life, you got to start somewhere with your investment journey and
what’s a better platform than SIP for doing so? SIP is a systematic method of
investing a fixed amount of money in various mutual fund schemes at regular
intervals, spread over a period of time. Before we discuss why SIP is the best
investment for creating wealth, let’s take a quick look at the perks of
investing through SIP.

Perksof SIP:

  • The
    choice to start with a small amount and increase it as one’s level of income grows
  • The
    many benefits of investing early in life
  • The
    systematic way of investment that develops a disciplined approach towards the
    habit of investment
  • Freedom
    from timing the market constantly
  • Choice
    of benefitting from market volatility through Rupee Cost Averaging
  • The
    benefit of creating wealth one step at a time through the Power of compounding
    in the long-term
  • The
    benefit of regular investment habit and the opportunity to save on taxes

Features that help to create wealth

  1. Rupee Cost Averaging: This particular feature is responsible for
    giving the people the freedom from timing the market to pick an ideal time for
    investment. The habit of investing regularly enables them to purchase more
    units when the market price decreases and allows them to earn profits by
    selling them at a higher price when the market price increases. Practising this
    over a stretch of time helps to bring down the average cost of purchase and
    helps to earn more.
  2. Power of Compounding: This feature allows those investors to create
    wealth who are putting in a meagre sum of money as their principal investment.
    The practice of investing regularly helps to magnify their investment over time
    and has a compounding effect on the sum. When done for the long run even a
    small sum of investment can generate enough wealth to lead a financially secure
    and comfortable life.

Start your investments through SIP at the soonest to enjoy its perks and
don’t forget to diversify your investments in such a manner that your returns
get optimised as per your financial requirements and goals.

To learn more about
SIP and its role in wealth creation, contact our professional team of financial
experts and advisors and optimise your investment in the best possible way.

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not an indicator of future returns. Wealth Redefine is a AMFI registered Mutual Fund distributor – ARN - 85350

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