Now you can earn huge amounts of money without losing your mind or your shirt – all you need is your current salary and some discipline! The Systematic Investment Plans (SIPs) involve investment through mutual funds periodically. You just have to invest a particular amount of money in specific time periods and see the savings grow exponentially over the years. SIPs have become popular after the demonetisation period. Hoarding cash may no longer be the best way to ensure savings for a lifetime. Since companies would invest on your behalf through mutual funds, there would be lesser risks and more returns accordingly. Ajit Narasimhan of BankBazaar who overlooks Savings and Investments told Business Insider, “SIPs help you by averaging costs and reducing risks. So the longer you stay invested, the higher would be your returns. So remember that your SIP is for a long period, and do not stop your SIP mid-way unless it is due to a break in income.” SIP allows investments of small amounts instead of lump sums. This can happen at a frequency of weekly, monthly or quarterly – some even offer daily SIPs.
Last year the Bombay Stock Exchange (BSE) introduced paperless SIP, called the iSIP for mutual fund investors. This move helped cut registration time and allowed net banking mode of payment to the subscribers, according to PTI. The takeaway of SIP investment is that you ought to invest as early as you can as it would only increase your returns in the long run. Moreover, you will have the option to choose the amount of your investment, as small or large as per your needs.
You may also like to watch
The returns on SIPs can vary and may rise to even 15% per annum, but that will be according to how equity markets play out and also if you remain invested for a long period of time. There can be a considerable jump in your income if you stay disciplined in your approach. You can have a financial goal so that you know that this money is being invested for a greater purpose and for a specific time period. A review must be carried out every year or a year and a half to make sure that the returns meet your expectations.