10 Reasons to invest in SIP

by admin November 24, 2016
10 Reasons to Invest in SIP, WealthhunterIndia

10 Reasons to invest in SIP

The reasons for investing in SIP are as follows:-

1) Inculcates habit of investing

Investing in SIP helps the investors in allocating a specific amount every month for a specific period of time thus making them a disciplined investor.

 

2) Initial Cost is Low

For investment in mutual fund through SIP route, one can start with as less as Rs.500.

 

3) Well regulated

All funds are well regulated by SEBI and managed by professional managers and hence investing through SIP route is considered a safe option.

 

4) Diversification

It helps in the diversification of risk as the money which the investor deposits is invested in different asset classes thus minimizing the overall risk for an investor.

 

5) Does Not Affect Monthly Finances

Starting a SIP with as low as Rs.500 does not strain one’s monthly finances and thus becomes an ideal investment choice for even a small time investor who would otherwise not be able to enjoy the benefits of investing in the long run.

 

6) Helps to Fulfill Dreams

It helps in generating a large amount of wealth for future for investors to fulfill their dreams such as buying a house, children education expenses, marriage etc.

 

 

7) Provides Opportunity

It gives an opportunity to participate in the growth and profits of India’s best and fast-growing companies.

 

8)  Reducing Taxes

It helps in reducing tax payout by choosing a tax saving fund.

 

9) Rupee Cost Average Advantage

You can take advantage of rupee cost averaging. This means that you buy fewer units when prices are high and more when the price is low, thereby averaging the cost per unit.

 

10) Flexibility

It provides flexibility to redeem the units.

 

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