Friday 10 November 2017

5 Reasons To Choose Systematic Investment Plan

Investing is the new way of saving for the rainy day. Investors should understand the necessity of converting their savings into investment. The swelling needs and the hiking inflation rate have made it mandatory for everyone to adapt the better way of multiplying their money. Many clients tend to believe investing as a synonym of the stock market. This is a myth which is required to be cleared. Mutual fund is another investment strategy which allows the clients to access an investing solution that shields the client’s money along with multiplying their wealth manifolds.

Unlike, the stock market or various other investment avenues, mutual fund provides an opportunity for investing relatively smaller amount regularly. The clients who are reluctant to invest an enormous amount at a single time can opt for Online Systematic Investment Plan to regularize their income and reduce the burden on their pockets.


Systematic Investment Plan is a method of investing in the schemes facilitated by mutual funds through a planned manner consistently. The concept of SIP came into being regarding the need for consistency in human life. The growth process is always slow but study. Whether it may be the process of a seed growing into a tree, or a child maturing into an adult, each and every flourishing activity takes time, but the results are exhilarating and steady. Thus, investment also should be a consistent and facilitate wealth creation easy for the clients.

Here are five reasons which will magnetize you towards parking your surplus in mutual funds by making use of SIP as your investment method.
  1. Organized Investment Process : The clients who tend to balance their income and expenditure for accommodating a certain amount in order to invest and save for future needs should undoubtedly take up SIP as one of their investment mechanisms. For example, if a person wants to save Rs. 3,000 every month then he need not to wait for the year end to deploy his money in one of his selected schemes. He can simply put the amount in a particular plan. Instead of saving every month for the lump sum payment at the end of year, the client enjoys a freedom of investing that money monthly through SIP. 
  2. Fit For All : SIP is a scheme which gives the liberty of investing in any of the schemes presented by mutual funds. Investors can opt for any plan whether it may be equity, debt or hybrid. These are the main categories; several schemes are present under each of the categories. Thus, if a person aspires to plan for his retirement or his child’s future, he is free to select the appropriate scheme and take up SIP to put in money in the selected scheme regularly. Hence, it is a one stop solution for each and every plan. 
  3. Categories Coinciding with Requirements : Clients have varying income levels and so are their investment strategies. To accommodate the needs of all mutual fund experts have made defined various categories of SIP. There are a variety of systematic plans like daily, monthly and quarterly. The clients are able to choose form the list and invest accordingly. Thus, the client gets a chance to select a payment method accordingly. 
  4. Top-up Facility is Available : There is a notion among the clients that the amount once defined for an SIP cannot be altered. This means that if a person starts a monthly systematic investment plan of Rs. 3000 and after a few months he has an extra surplus of Rs. 5000 then he is not allowed to put that into his SIP account. But, that is a misunderstanding. The clients are free to invest an extra amount in their account. This facility is called as top-up facility. Thus, investors can park their surplus money along with their regular investments. 
  5. Online Transactions : With the changing market trend investment industry is also experiencing a revamp. The clients are being attracted towards online dealings. From clothes to accessories and from books to stationery all are available and ordered online. Following the trend mutual fund companies have launched the concept of online investing. This allows the investors to save their time and invest according to their choice. Clients can browse through various schemes to invest and can also pay the instalment of their SIP through their account directly. 
Therefore, SIP is no doubt one the best way to deploy the money in schemes which suffice your needs. Organizing the investment mechanism the clients will be able to manage his account by using online investment method. Investing, earning and monitoring becomes quite easy.

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