So, If you are one of them who cannot decide where should you invest your money and are thinking to invest in FD’s or RD’s etc. Then this article is for you as if you are willing to take a little risk then the plan we have mentioned below will give you very good results. We have mentioned about this plan, how it works and it’s benefit. So, now you can easily understand why SIP is a good choice for investing your hard-earned money.
What is SIP?
SIP stands for Systematic Investment Plan and is basically a investment plan in which every month you will have to deposit certain amount of money in specific mutual fund. Basically in this you deposit small amounts of money every month and after sometime you get bigger results.
How SIP works?
Basically suppose a group of investors invested in a 50000 mutual fund which includes stocks, bonds etc and each investor invested 10000. So if the ROI (Return of Investment) rate is 20%, then each investor will get 12000 but the roi depends on various factors like market condition etc and the rate can vary. So SIP will provide you with more roi then FD’s etc investment methods.
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Benefits Of SIP
In SIP investment you will not have to worry about anything as sip is a automatic process. On the specific date the sip will deduct the set amount from your bank account and will automatically invest in market. Thus, saving time and hassle.
SIP always give more return rate in longer terms. So if you invest in sip you will eventually think twice from taking it out early which will help you in saving alot and will provide you with better ROI gain.
No fixed time
In sip the investor can take out the money any time if he needs it. There is no fixed terms for sip which is another advantage. Also the SIP money can be increased or decreased any time with ease.
So if you want better returns invest in sip for a longer term.
Disclaimer: Note that Mutual funds investments are subjected to market risks, read all scheme related documents carefully.