SIP or Systematic Investment Plan is a boon as it allows everyone to enjoy the power of investment with very little amount. Why should you start investing using SIP?
1) You can start building your dream corpus amount at your own pace starting with a very minimal amount Rs. 500 per month.
2) You develop regular and healthy savings habit.
3) You follow a strict financial discipline by making a commitment of a fixed sum of money regularly no matter what the market conditions are.
4) You have the option to choose a scheme that meets your requirements from over 1500 schemes from more than 40 different asset management companies.
5) You can get an average return of at least 10% a year when investing with different schemes.
6) You can experience the magic of compounding where you earn interest by reinvesting the interest already earned. This will turn a small amount into a very large corpus when invested regularly.
7) You can save on your taxes by choosing appropriate Tax Saving Funds.
8) You can even purchase Gold through SIP.
9) You can handle the highly uncertain/ volatile stock market through SIP as it averages out the purchase cost over a period of time.
10) You need not pay tax on dividends or capital gains if the mutual fund is held for more than a year.
11) You can ensure that your money works for you continuously with SIP investment.
12) You have the flexibility to redeem the units when you need (except for tax saving fund).