Systematic Investment Plan (SIP).
Systematic investing has a compounding effect on your investments. In the long term, an investment as low as Rs 1000/- per month swells up into a huge corpus. Systematic Investing in a Mutual Fund is the answer to preventing the pitfalls of equity investment and still enjoying the high returns.
We know that the power of compounding can create magic for your investments, starting your investments early also has its own advantages. Starting early means that the power of compounding starts acting on your money earlier thereby generating higher returns.
An individual who starts planning for his retirement at 25 yrs of age by investing a modest Rs. 1000 / month collects up to Rs. 40 Lakhs on retirement whereas his investment over the period is just Rs. 4.2 Lakhs.
On the other hand if the same individual delays his retirement planning by 5 yrs, his wealth upon retirement reduces significantly (approximately Rs. 15 Lakhs.)
Check out SIP calculator on below link, from Birla Sun life for more SIP calculation details.
SIP Calculator
Why SIP ?
For long-term wealth creation through equity market you need discipline and long term time horizon which are inherent features of SIP. The following features of SIP makes it fit for equity market.
1. Simple and disciplined approach towards investment
2. Investment possible with small sum of money invested regularly to accumulate wealth
3. Based on concept of Rupee Cost Averaging
4. Flexibility in terms of Amount or Quantity based SIP
5. Flexible intervals like Daily/ Weekly/ Fortnightly/ Monthly basis
What are the Benefits of SIP ?
As common investor doesn't have enough time and resources, SIP proves to be a efficient option for them. Below are the important benefits of SIP.
1. Reduces Risk because of Rupee Cost Averaging
2. SIP can be started with very small amount of money
3. Timing the market is not necessary
4. Long term financial goal can be aligned with SIP
5. Disciplined approach towards Investment helps in controlling the emotions
How to Select Companies to Invest ?
The thumb rule is to go for the companies you want to own if given a chance.
Some stocks are great for the SIP mode of investing. These are stocks we should accumulate, in small steps as they represent long term value. They are companies which have proven track record. These companies have a solid, stable and ethical management and operate in profitable area with long term growth prospects.
The best strategy is to opt for blue chips like SBI, Reliance, ICICI Bank, Infosys etc. If you do not want to go for equity SIP you can also choose Mutual Fund SIP’s where you are relieved of the individual company research.
Systematic investing has a compounding effect on your investments. In the long term, an investment as low as Rs 1000/- per month swells up into a huge corpus. Systematic Investing in a Mutual Fund is the answer to preventing the pitfalls of equity investment and still enjoying the high returns.
We know that the power of compounding can create magic for your investments, starting your investments early also has its own advantages. Starting early means that the power of compounding starts acting on your money earlier thereby generating higher returns.
An individual who starts planning for his retirement at 25 yrs of age by investing a modest Rs. 1000 / month collects up to Rs. 40 Lakhs on retirement whereas his investment over the period is just Rs. 4.2 Lakhs.
On the other hand if the same individual delays his retirement planning by 5 yrs, his wealth upon retirement reduces significantly (approximately Rs. 15 Lakhs.)
Check out SIP calculator on below link, from Birla Sun life for more SIP calculation details.
SIP Calculator
Why SIP ?
For long-term wealth creation through equity market you need discipline and long term time horizon which are inherent features of SIP. The following features of SIP makes it fit for equity market.
1. Simple and disciplined approach towards investment
2. Investment possible with small sum of money invested regularly to accumulate wealth
3. Based on concept of Rupee Cost Averaging
4. Flexibility in terms of Amount or Quantity based SIP
5. Flexible intervals like Daily/ Weekly/ Fortnightly/ Monthly basis
What are the Benefits of SIP ?
As common investor doesn't have enough time and resources, SIP proves to be a efficient option for them. Below are the important benefits of SIP.
1. Reduces Risk because of Rupee Cost Averaging
2. SIP can be started with very small amount of money
3. Timing the market is not necessary
4. Long term financial goal can be aligned with SIP
5. Disciplined approach towards Investment helps in controlling the emotions
How to Select Companies to Invest ?
The thumb rule is to go for the companies you want to own if given a chance.
Some stocks are great for the SIP mode of investing. These are stocks we should accumulate, in small steps as they represent long term value. They are companies which have proven track record. These companies have a solid, stable and ethical management and operate in profitable area with long term growth prospects.
The best strategy is to opt for blue chips like SBI, Reliance, ICICI Bank, Infosys etc. If you do not want to go for equity SIP you can also choose Mutual Fund SIP’s where you are relieved of the individual company research.
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