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We all have financial goals but most of us do not know how to achieve the same. If you too are in the same dilemma then the best thing that you can do is invest in SIP. It is a planned way of investing fixed amount in SIP at regular intervals. For More Info: - http://www.wealthcareindia.com/
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Understanding the difference between mutual funds and SIP Mutual funds Wealthcare India Contact Us:+91-9871 090 316 sales@wealthcareindia.com
Introduction You may have heard a lot about systematic investment plans but may not be aware about the details about the same. Let us try to understand a few details about these systematic investment plans which are normally known as SIP.
It is possible to invest a large amount in mutual funds at once. But in the case of SIP the investor has to invest a specific amount in the mutual funds in a planned manner and at regular intervals. • The investor gets the benefits based on Rupee- Cost averaging and the power of compounding. In case of regular investors the more units are purchased when the market rate is low and vice versa.
Benefits of SIP : • It makes you more disciplined and you save more regularly. • You have the flexibility to stop investing as and when you want. • You can also reduce or increase the investment amount. • There is not much fuss involved in this type of investment. • All you have to do is give auto-debit instruction to the bank. • It is very easy to monitor these type of investments.
How you can use SIP investments for wealth creation: • If you want to create wealth with SIP investments and reach your financial goals then you must make sure that you start early. You must have a long term investment plan if you want to get maximum benefits and earn lots of money. • It helps in diversifying your investments. This helps in decreasing the risk and it also helps you get maximum benefits.