Why should you invest in SIP?, list of Various Reasons for Invest in SIP
Why should you invest in SIP?, list of Various Reasons for Invest in SIP. Find out Complete Benefits for Investment in SIP, you can invest a fixed amount in mutual funds step-by-step monthly or quarterly over a period of time, thereby averaging out your cost of investing and benefiting from the power of compounding. Here we are providing many reasons for Invest in SIP like – Habituate the discipline of Investment & Savings, Does not require expertise knowledge, No need to monitor the market continuously, High Returns in long run etc. Now you can Scroll down below and check more details for “Why should you invest in SIP?”
Why should you invest in SIP?
1. Habituate the discipline of Investment & Savings:
Allocating certain portion of your income for an investment regularly will habituate and develop a habit of savings and build the wisdom of financial decision making. Making regular contribution towards a scheme will enhance the financial discipline in every one.
2. Does not require expertise knowledge:
One does not need to be an expert in market scenarios to make investments through SIPs. Because SIPs are designed by various financial services providing enterprises in such a way that the potential loss in one investment can be set of against possible gain. So you do need to spend time to learn about the market except in long run.
3. No need to monitor the market continuously:
It is not required to spend your time in monitoring the stock market since the mutual funds. Since the SIPs are designed in such a way that certain sum of fund is invested in each of different mutual funds. So it enables you not spending the time monitoring the market.
4. Lighter on pocket:
SIPs can be made at very small amount of contributions such as Rs 1000 per month also. So it doesn’t create any financial burden on you. The major advantage here is lower and regular investment without cutting through your expenses.
5. Brings down the average cost :
SIP woks based on the principle of rupee cost averaging. As per this SIP ensures that more number of units are purchased at an amount which will give lower number of units when the market is performing well. This concept reduces the overall cost of average unit of investment.
6. High Returns in long run:
SIPs give higher returns in the long run. When the average cost is spreaded over a vast period the return per unit also will be high when compared to that results in short run. So it is better to continue the SIPs for longer periods.