There are advantages to being a disciplined investor. Investing regularly via Systematic Investment Plans (SIP), even if these are small amounts, offers many benefits like:
- There is no need to time the markets as you invest at predetermined intervals. This spares you from investing a lump sum amount at peak prices.
- You benefit from an investment principle called 'Rupee cost averaging'. Since you invest fixed sums at regular intervals, you pick up more units when the prices are low and less units when the prices are high. This brings down the average cost of your units.
- A Systematic Investment Plan renders to you the power of compounding, especially if you begin your SIP early in life.
- SIPs inculcate the savings habit in investors. On a regular basis you put aside affordable sums of money and without realising it, over the long run you could amass great wealth.
- It is a hassle-free mode of investment since you can issue standing instructions for the regular transfers of money into your SIPs.
- SIPs serve as a great financial tool to counter inflation
Click here to know more about the different SIP options which are appropriate for your specific needs and are in line with your profile. Our Relationship Manager will get in touch with you shortly.