Sip By Sip For S.i.p (systematic Investment Plan)

Sip your way to wealth

Sip your way to wealth. This seems to be the latest investment mantra of India's small and conservative investors. After all, having gone through all those years of ups and downs and experienced all sort of volatility, they now need some fixed and logical way of investing, which won't only promise them good returns but also ensure their safety. And SIP seems to be a way out!

Simply put, systematic investment plan (SIP) is a simple, time-honoured strategy designed to help investors accumulate wealth in a disciplined manner over the long-term and plan a better future for them. No wonder they have always been in the news.

Says V Ananthkrishnan, chief investment advisor, Religare Finvest Ltd, "SIPs have always been in the news since their launch, but they gained popularity in the later stage. The rollercoaster ride of the stock market took investors all through the highs of 12,500, then to the gloomy 9,000 level. This volatility made many investors lose their money."

This shifted the investors' focus towards SIPs. "Routing one's money via a SIP makes it a better option as it doesn't become a heavy burden on one's wallet, as with rupee cost averaging, the average cost of purchasing the instrument is brought down significantly," he adds.

Besides, SIPs are believed to be an ideal investment avenue for common investors. Says Arjun C Marphatia, CEO, Quantum Asset Management Company, "A SIP is an ideal investment avenue for common investors who may not be have a large amount to invest at one go. Moreover, SIPs inculcate the habit of disciplined regular savings and with the increase in awareness of investing and saving for the future, they have gained in popularity too."

Also, compared to a bank recurring deposit, where interest is taxable, investments in SIPs may generate capital gains, and long-term capital gains from mutual fund units are tax-free. Additionally, some offerings do not levy any entry load. So, there is no additional cost to the investor and the entire amount subscribed to by the investor is invested, giving him an added advantage.

Thus, with the rise in popularity, most of the fund houses today offer SIPs in various options, including Income Fund, Monthly Income Plan, Child Benefit Fund, Balanced Fund, Index Fund, Growth Fund, Balanced Fund Equity Fund and Tax Savings Fund.

by: Rajendra Bhatia

POST COMMENT

Kansas City Turnkey Investments Want To Get The Most Out Of Appreciating What A Bamboo Investment Is All About? Find Out How! Why You Should Think Of Teak Forestry Investment Make Money Easily Without Any Investment Getting High Return On The Net Investment Choices Make The Right Choice In Your Investments. Strategic Location Makes Kharadi An Ideal Investment Destination Effective Time To Make Marginal Investments In Greater Noida Property Investment On The Rise In Goiania Thanks To Minha Casa Minha Vida Ralph Lauren An Investment In Fashion Is Kharadi A Good Investment Destination? Choosing The Right Middle Man To Make Profitable Investment Tool Boxes Brisbane Are Essential Investments For Contractors.