A SIP is a disciplined investment plan and helps reduce susceptibility to market fluctuations. It is a powerful tool that helps you preserve capital and also translates into substantial wealth creation in the long run.
A SIP is an excellent tool for investors to build wealth. There is no need for a one-time lump sum investment.
A regular investment pattern helps build discipline in investors. You can go for a SIP according to your goal - marriage of children, their education needs or your retirement corpus. The 'rupee cost averaging' makes the market fluctuations work for you, and reduces the risk of investing all your money just before a market downturn.
SIP investments can help you reach your financial goals by taking advantage of rupee cost averaging, and growing your investments with compounded benefits.
Rupee cost averaging works best with investments that tend to fluctuate in price regularly. So a SIP can be most effective when used in buying equity-based funds.