Brighten Up Your Diwali with SIP
Have you heard about SIP investments before? Well, SIP or Systematic Investment Plan is basically a mode of investment through which one invests in the mutual fund schemes by paying a small fixed amount regularly for a period of time till the maturity date arrives. Today, in this blog, the expert at MySIPonline brings only for you the reasons as to why and how you can invest in SIP plans to brighten up your Diwali.
What SIP Plans Hold for the First Time Investors?
Are you a first time investor or still doubtful whether you should invest in the SIP plans or not? Here are the points that will make you wonder why haven’t you invested in them yet.
- Benefit of Compounding - You must have heard and even calculated compound interest in mathematics, right? Well, this is exactly the same, i.e. the installments that one pays regularly is reinvested along with the returns earned on them, thus leading to a huge amount at the end.
- Rupee Cost Averaging - It is this feature that makes you free from timing the market as no matter whether the market is high or low, if you remain invested, at the end, you will avail the benefit in the form of better returns.
- Disciplined Investment - This is one of the best features if you are a new investor. Since, the method of investment is regular, it helps one cultivate a savings’ habit over time in a disciplined way which is good for one’s future and financial health.
- Long-Term Goals - If you are planning to invest for a long term period, SIP is the right choice for you as it will help you avail the compounding benefit along with rupee cost averaging. Thus, helping you reach your long-term goals.
- Easy to Pay - Since the payment is done in the form of installments, it is much convenient for a new investor to invest in it. The investor may continue to fulfill his monthly expenses without having a huge additional burden on the pocket.
Who Should Invest in Mutual Funds via SIP?
SIP is a mode of investment which is open for all the investors around the country. No matter whether you are a kid, student, housewife, professional, entrepreneur, businessman, etc. you can add such plans to your investment portfolio. All you need to be aware of is their is always some risk involved in such investments, as it is said, “Mutual Funds Are Subject to Market Risk.”
Which Is the Right Time to Add it to Your Portfolio?
Every time is the right time for investment in mutual funds via SIP investment. As when the market is low, one will get the benefit of huge number of units as at that time the net asset value decreases. Also, the investors are recommended to make additional purchases so that when the market rises again, investors are able to earn glorious returns.
Invest in the Best Mutual Funds
- 100% Paperless
- No Transaction Charges
- Easy to Invest
- Safe & Secure
How Can You Invest in the Top SIP Plans?
You may invest in the top SIP plans both through online and offline mode. To invest online, all you need to do is register yourself at MySIPonline, and the journey begins. Here, you will not only get the list of top performing funds but will also be able to utilize a number of other services which are a boon for the new beginners. You may use the SIP calculator and may even use the “compare and invest” tool to compare the same or different type of schemes available by various fund houses. Once, you have decided the scheme, you may invest in the same by clicking on the invest button.
Points to Consider While Investing
There are a number of factors which should be considered specially if you are investing for the first time. They are as mentioned below:
- Understand Your Portfolio Requirements - The first thing that you should be doing is understanding your portfolio needs. You should be well aware of the risk that you are ready to take, the time period for which you are willing to invest, your investment goals, and the amount that you are ready to invest.
- Research Well About the Investment Scheme - Once you know your requirements, the next step is to understand well about the scheme that you are planning to invest in. Find as much as you can like the past returns, the risk factor, the fund managers, the investment strategies, the asset allocation, and in the end, don’t forget to read the scheme information document carefully.
The Final Note
So, what are you waiting for, register on MySIPonline and start browsing through the plans to invest in. This Diwali, surprise your family and friends without spending money. Know that the experts are here to help you out if you get stuck somewhere. In case of any query related to the regular funds, you can post the same here. Wish You All a Very Happy and Prosperous Diwali.
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