Beginner’s Guide to SIP: What, How and When?

To achieve financial success in life, we put in a lot of hours at work and office. And it is only during these hours that we actually strive towards achieving our goal. But with a Systematic Investment Plan (SIP), your success is in progress. What the right answer to “Which SIP is best in India”, it lets you 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 taking advantage of the facility of compounding.

A Systematic Investment Plan (SIP), more popularly referred to as SIP, maybe a process offered by mutual funds to the investors to take a position during a disciplined manner and a way systematic manner. SIP facility allows an investor to take a position a hard and fast amount of cash at pre-defined intervals within the selected open-end fund scheme.

The fixed amount of cash is often as low as Rs.500, while the pre-defined SIP intervals are often on a weekly/monthly/quarterly/semi-annually or annual basis. You can take the SIP route to investments, and if the investor invests during a time- bound manner without fear about the market dynamics and stands to profit within the long-term thanks to average costing and power of compounding. Let’s discuss some of the advantage you receive by successfully investing in the – “Which SIP is Best in India”

What are the Benefits of SIP Investing?

1. Power of Compounding

When you invest regularly through SIP and invest for the future, the advantages are magnified by the compounding effect. This effect ensures that you earn returns not only on your principal amount (actual investment) but also on the gains on the principal amount i.e. your money grows over time because the money you invest earns returns. And the returns also earn returns. The power of compounding works best as you stay invested helping your money earn more money itself, over the years. So, as you get ready for work or even decide to take a break from it, be restassured that SIP is constantly working towards your goals and helps you keep your success in progress.

2. Power of early Starting

The earlier one starts saving and investing regularly, the better it's to realize your goals. You can see that the impact of starting to invest Rs.5,000 monthly at various stages of life till the age of 60 years (assuming a return of 12% p.a.) is astounding.

Before letting you know – Which SIP is best in India? Know what other benefits are covered.

3. Other benefits of SIPs

SIPs assist you to average your purchase cost and maximize returns. When you invest regularly over a period regardless of the market conditions, you'd get more units when the market is low and fewer units when the market is high. This averages out the acquisition cost of your open-end fund units.

Goal-based SIP Investing

We have many financial goals in life but do not know how to plan and invest for them. To plan your financial goals right, it is important to identify each goal in terms of a specific amount and the number of years that it will take to meet them. This is the essence of goal-based investing.

How to customize the SIP?

Though the foremost popular SIP is investing a hard and fast amount monthly, investors can customize the way they put money via SIPs. A lot offund houses like Sqrrl, allow investors to invest monthly, bi-monthly, and fortnightly, according to their convenience. Sqrrl is one of them if you answer “Which SIP is best in India”. Sqrrl app provides you the most convenient way to invest in SIP.

Apart from this, Step-up SIPs allow investors to extend the SIP amount periodically.

‘Alert SIP’ is another sort of the regular systematic investment plan which sends an aware of the investor to shop for more when the markets are down.

When to invest in a SIP?

SIP investments are often started anytime ensuring minimum risk with the right suitable scheme plan for the investor. It is very important for the investor to choose the scheme which suits his long-term goals well. Hence, there's no suitable time- frame within which an investor should start a SIP investment plan, the earlier the higher. Sqrrl is an online platform which gives you all the professional help required to start your SIP investing.

Simply use Sqrrl app analysis help, enter the SIP amount, the time period for which you want to invest in the mutual fund and the approximate return expected. You will get the entire investment amount upon completion of the period of time. It provides you with the professional help you need. According to how much you want your final amount to be, you can select the appropriate amount to start a SIP with.

Now that you know where to search for authentic results about – Which SIP is best in India? Download the Sqrrl app!