what-is-sip-and-how-to-make-the-most-of-your-sip

1. What is SIP and how to make the most of your SIP?

3. SIPs are extremely useful for those who want to enjoy the benefits of investing IN mutual funds but find it hard to commit large sums at a time. With SIPs, an investor can invest smaller amounts at regular intervals (monthly or quarterly) instead of one big lump sum altogether. This helps those with budget constraints to invest comfortably while also planning their finances smoothly. Additionally, this regular practice also allows investors to use rupee cost averaging; whenever the market is low, they can buy more units, and when it’s high, and they can buy fewer units of the same fund. Mutual fund investment has become much easier and less intimidating due to these plans! How to make the most of your SIP? 1. Get benefits of power of compounding Investing in Equity Mutual Funds is an ideal strategy for investment via a Systematic Investment Plan (SIP). SIPs on equity funds allow you to benefit from the power of compounding, which is much higher than any type of debt fund. In the long run, it can provide exponential returns due to compounding, and your money has the potential to magnify multiple times. Furthermore, time plays an essential role in equities as opposed to "timing" with debt or liquid funds, meaning that by investing for longer, you can increase your wealth. Investing in equity funds through SIPs is a sound way to make long-term financial goals reality. Systematic Investment Plans (SIPs) should be set up and adhered to in a disciplined manner, as suggested by the acronym. When SIPs are disrupted, the compounding of gains of long-term investments are also disrupted. Stopping the SIP should be avoided unless there is an absolute necessity to do so. The best practice is establishing a rule-based approach and making it as passive as possible. Instead of timing SIPs according to highs and lows in the market, invest at regular intervals over an extended period to maximise returns. 2. Always invest in diversified fund options Setting a Systematic Investment Plan (SIP) is an excellent way to save and invest in the market, but you need to be sure that you have the funds available on time. Choosing a date for your SIP each month is recommended to be comfortable enough so that you don't miss out. 3. Always Choose Growth Plan Investing in SIPs can be a great way to secure your financial future, but it is important to understand the options available when choosing between growth and dividend plans. While dividend plans provide the immediate appeal of regular pay-outs, growth plans offer a more excellent value by automatically reinvesting returns and compounding them over time. The golden rule is to always opt for a growth plan when considering which plan is right for you. About US Wealth First Online is Best Investment Company in Pune, here to guide you along your investment journey too! Our certified financial planners offer tailored advice for all kinds of investors across India, so call us at +919979854966 to get started today. CONTACT US: EMAIL- compliance@wealthfirst.biz / nikhil@wealthfirst.biz CUSTOMER CARE NO. 079-40240001 TIMINGS 9 AM -7 PM (ON MONDAY - FRIDAY EXCEPT HOLIDAYS)