5 SIP FEATURES THAT EVERY MUTUAL FUND INVESTOR SHOULD KNOW

“When the collection of capital from different investors is invested in two companies, shares, stocks or bonds is known as mutual funds.” 

It merely enables you to invest your money and multiply it without any efforts or hard work. 

Mutual Funds are quite safe and beneficial as they hold many securities. The best thing about a mutual fund is that it is regulated by government body hence transparency is its Core feature. 

Professional management decreases the risk of losing it allows to invest in a small amount every single mutual fund is registered with SEBI (security exchange Board of India). 

  

SIP: “The method of investing a fixed amount on a regular basis on a mutual fund scheme is called a SIP or systematic investment plan.” 

As the name suggests, SIP allows an investor to purchase units periodically which can be weekly, monthly or quarterly. If you are a new investor and don't have sufficient knowledge about mutual fund than you must go with SIP as it is the smartest way to invest in equity mutual funds to gather money over a long period. 

  

FINANCIAL DISCIPLINE: 

SIP helps you in maintaining financial discipline in your life because it is a regular investment system where you invest your money after a specific period. It is much easier and more straightforward than the regular hectic investment where you have to look after numerous factors like market mood, the growth of the company, return rates, etc. 

  

REGULAR INVESTMENT:  

As we know consistency is the key to success similarly a disciplined investment routine place a crucial role in achieving high returns. SIP is a consistent investment of money regardless of the mood of the market which means you keep on investing without any influence of factors like market condition, the growth rate of a company, etc. This disciplinary investment will result in amazing rewards in the future. 

  

START WITH ₹500 ONLY: 

Starting with minimum investment is the best option if you are not sure about your investment plans. You can start with a minimum investment of ₹500 only and can continue with your budget planning. The best part is you can increase your installment later on. SIP of ₹500 is an excellent option of investment if you are a young investor and can use the money for your future plans. 

  

CONTINGENCY FUND: 

The flexible nature of SIP allows you to withdraw your money in any emergency. It can work as a savior for you on any unfortunate and contingencies situation. 

  

BEST RETURNS EVEN WHEN THE MARKET IS LOW: 

SIP investment provides better returns on investment even if the market performs low the interest earned on the invested amount got accumulated and compounded over a long period.