Advantages Of SIP – Know It Before You Invest In It!

If you are wondering what your neighbours and relatives are investing in, then save yourself some time because it is SIP – the most updated, popular and convenient method of investing today! It doesn’t put any pressure on the investor – neither in terms of the amount of money needed for investment, nor in terms of frequency of investment. In short, SIP or Systematic Investment Plan is the plan that allows a person to invest slowly and gather wealth in a step by step method.

More and more people are getting attracted to the idea of investing in SIP accounts. They are extremely easy to open and mutual fund companies have made it possible for the customers to open their SIP accounts from their homes. There are many other advantages of investing in SIP.

The basic advantages of opening and investing in SIP accounts 

Almost everybody today has an SIP account and has started investing their money in SIP. This is because SIP is one of the safest and most organized methods of gathering wealth in a steady pace. Some of the advantages of investing in SIP are as follows:

1. Disciplined approach towards investment – People who prefer stocks, need to speculate market timings. The risk factor is a major concern and people need to have a good knowledge about the market and conduct appropriate research. SIP investments are a lot more relaxing and disciplined.

2. Compounding money – Investing in SIP ensures that your money grows, day after day, month after month. In this method of investment, the money grows, periodically and there is no risk involved either.

3. Easy monitoring – The hassle of monitoring stocks regularly is not something you have to deal with in case of SIP investments. One can just opt for Magnum Easy Pay (also known as auto debit) facility and the sum of money that you decide to invest; will be automatically debited from your account.

4. Rupee Cost Averaging – In the case of SIP investment, a person can invest a pre-decided sum of money at a particular period of time. This he can keep repeating at certain intervals. Since the amount invested remains constant, the average cost is low. 

These are only four of the numerous advantages of investing in Systematic Investment Plans or SIPs, today. The first thing you need to do is choose a company of your liking and start investment without further delay.