Investment in the stock market is
one of the best options to earn additional income to safeguard your future.
While choosing a stock an investor should always analyze the risk appetite,
investment horizon and ultimate financial goal. Hence, choosing mutual funds
helps you to lower the risk and diversify your investment portfolio.
Mutual Funds allows an investor
to start the investment with just Rs.500 per month through SIP. Investing in
mutual funds through SIP offers you several benefits and in this blog we'll be
discussing what is SIP and 5 important benefits of SIP!
WHAT IS A SIP?
Systematic Investment plan (SIP)
is a type of investment method that allows an investor to invest a fixed amount
at regular intervals in an investment scheme. When an investor decides to pay
an installment amount through SIP, a fixed amount is debited from the investors
account based on the scheme chosen by the investor and would be transferred to
the scheme instantly which they have invested in.
BENEFITS OF SIP:
1. IMPLANT THE DISCIPLINE OF INVESTING REGULARLY:
SIP investments are made at
regular intervals on a predetermined day. As mentioned earlier, the SIP amount
is automatically debited from the investor's account and the fund is invested
in the scheme chosen by the investor. This disciplinary approach of regular
investment helps the investor to be free from actively tracking the market.
2. CONVENIENCE:
When you choose to invest in
mutual funds through SIP, you're experiencing a hassle-free process. All an
investor needs to do is to enable auto-debits from their respective bank
accounts.
3. RUPEE COST AVERAGING:
Rupee cost averaging helps an
investor beat market fluctuations and also helps the investment to be averse to
the market volatility. If the stock price hits the bottom, SIP allocates an
investor more units, and allocates fewer units when the stock price surges
higher.
4. COMPOUNDING POWER:
The term compounding power refers to earning
profit by investing your profits. As an investor if you dream to make the most
out of compounding in mutual funds, you should start investing early and must
prefer to invest for a long-term.
5. BUY MORE STOCKS IN SMALL QUANTITIES:
Investors would require a large
surplus to purchase individual stocks in order to diversify their investment
portfolio. However, when you choose to invest in mutual funds you can own these
stocks in small quantities with just a few thousand rupees.
CHOOSE TO INVEST IN MUTUAL FUNDS:
SIP can be a good way to start
your investments in mutual funds. Choosing mutual funds not only inculcates the
discipline of savings but also offers the investment a chance to grow in the
long-term. Hence, investing your valuable savings in the mutual fund stocks can
reduce the risk exposure and also allows the investor to diversify the
investment portfolio.
If you're willing to invest in
mutual funds and you're in search of the best market expert, then it's time to
meet Goodwill. Goodwill is one of the best brokerage firms in India that offers
expert strategies to its valuable investors at the lowest brokerage fee. Backed
by Goodwill experts, you will be benefit with exceptional customer support,
demo trading platform and live training sessions. Click here to Open your free DEMAT
Account with Goodwill today!
For more
info, visit the official website of Goodwill or make a call on +91 80122 78000 to trade your stocks smartly
and efficiently. Stay connected with Goodwill's Facebook Page and get instant live updates on your stocks.
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