If you wish to put money into a program that offers robust returns and various advantages, then you can obtain this combination through SIP. With SIP, you put money into mutual funds. Although this scheme is linked to the market, it involves less risk than direct investment in stocks. When discussing gains, the typical yield of this plan is thought to be approximately 12 percent. In this scenario, this plan has the potential to outpace inflation. Thanks to the advantages of compounding, substantial profits can be achieved over time with this strategy. Discussing the advantages, the characteristics of SIP offer considerable flexibility for investors and vary from other plans. Here are 7 unique features that you won’t readily discover in any other program.
Modest Investment Plan SIP
There is a better option of investment for those who cannot invest a large amount in a lump sum. Such people can start SIP with a small amount. Explain that you can start SIP from Rs 500 a month and you can also increase this amount as your income increases over time.
Consistent Investment Intervals
When you have to deposit the installment of SIP, you are given the option of all the intervals like weekly, monthly or quarterly, you can choose it according to your own. Due to the regular investment pattern of SIP, you get the benefit of rupee cost averaging, which helps investors to protect them from market fluctuations. Rupee cost averaging has a good advantage in long-term investment. At the same time, it proves helpful in forming a habit of disciplined investment.
Fixed Investment Amount
When you start a SIP, you start with a fixed amount, but if you want, you can also use the ‘SIP Top-up’ facility as supplementary contributions from time to time. You get a lot of good benefit in the future.
Investment Pause Option
If you feel that you are unable to pay the SIP instalment due to some reason, you can also pause it for a certain interval. This option can prove to be very helpful in the event of a financial crisis. However, SIP automatically resumes after the pause period is over.
Adjustable SIP Intervals
SIPs also allow you to change your investment intervals between weekly, monthly, or quarterly SIPs. Meaning if you have chosen the option of quarterly SIP, and you want to convert it into monthly SIP after some time, then you will get this option. You can get these changes done through an online request or by making a written request to your respective mutual fund provider.
No Maximum Investment Limit
You can start with a SIP of course from Rs 500, but there is no maximum investment limit. Meaning you can invest any amount in it.
