Everyone wants to have enough money to fulfill all their wishes, keep their family safe and live a tension-free life. But how will this happen? Just thinking will not do anything! For this, you need the right planning, right investment and right understanding. And today we are going to tell you a way that can help you turn all your dreams into reality.
What is this ‘magical’ way?
This ‘magical’ way is – Systematic Investment Plan (SIP)! Hey, this is not magic, this is a smart way to invest in mutual funds. In SIP, you invest a small amount every month and this amount grows slowly and one day it becomes a big mountain!
How does SIP work?
In SIP, you have to put a fixed amount in mutual funds every month. Just like you put money in a piggy bank every month, similarly in SIP you put money in mutual funds. Now you must be thinking what is a mutual fund? So understand that a mutual fund is a ‘bank’ where many people deposit money together and invest that money in the stock market.
What are the benefits of SIP?
Small investment, big profit: In SIP, you can start with a small amount and this small amount gives big profit in the long run.
Discipline: SIP makes you have the habit of investing every month, which brings financial discipline in you.
Low risk: In SIP, you invest for a long time, which reduces the impact of market fluctuations.
Easy and convenient: Starting a SIP is very easy and you can stop it anytime.
Let’s see some examples now!
In 10 years: If you invest ₹4,000 every month, then in 10 years you can have ₹9,29,356! In 20 years: If you invest ₹4,000 every month, you can have ₹39,96,592 in 20 years!
Some important points!
SIP is a market linked investment, so it carries some risk.
Before starting a SIP, consult your financial advisor.
Know about mutual funds well before investing in SIP.
FAQs
Is SIP safe? SIP is market linked, so it carries risk, but it can prove to be beneficial in the long run.
How to start SIP? You can start SIP by visiting the website of any mutual fund company.
Can SIP be stopped anytime? Yes, you can stop SIP anytime.
So what are you waiting for? Start SIP today and make your dreams fly!
Disclaimer: Investment in mutual funds is subject to market risks. Please read all the documents carefully before investing.