As in the earlier blog on SIP, it has been said that investment is a necessary thing to rid of tension in our life, to be one step ahead of others who are risking their life not investing.
As many people think that investing means giving a large portion of money for investment and thinking of that, they triggered their negative emotions. But SIP does not work like that.
SIP is a method of investing a fixed amount of money that will be deducted in a specific time and will be invested by the experts in the Mutual Funds.
SIP can be started with a minimum amount of ₹ 500, and there are many profits for a small contribution.
Like a monthly expense and discipline investment: Just like every month expense in your house for grocery, which gives return for the whole month, this small investment will give effect in the future and will help to reduce the expense pressure.
Easy: SIP is easy in opening or closing. If you think that you cannot go with it in future or pause it. Its simple to stop and there is no charge for stopping it.
Low investment Amount: As said before, it is a low investment which means it a person can bear it as much time as possible.
Rupee Cost Average: when the cost of product declines, people tend to buy it more and when the price rises, the buying reduces. The same goes for equity. SIP helps to buy equity shares when the prices are low and it buys less when its price goes high.
For example, let’s take that the NAV for a mutual fund is currently Rs 10. Now if you invest Rs 1,000 in a mutual fund, you will get 100 units. As the NAV of the mutual fund accelerates, your investments will also develop accordingly. So, if the next year, the NAV of this fund becomes Rs 20, then the 100 units that you had bought for Rs 1000, would be worth Rs 2000 after the increase. This is the way investment develops, helping it to create returns over a long time
Money is the only thing that can grow on its own if you place it in a right place and can also vanish its value if it’s kept idle. As when we buy something it becomes an investment for us. For example, if we buy a refrigerator, it’s an investment for us because it will save our food for a long time so it will reduce buying more food. Same as the investment. This market welcomes everyone of us who wants a secure future for ourselves.
And those who want to enter but still have a problem understanding, we are here for them, to help them and to grow with us.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISK READ THE OFFER DOCUMENTS CAREFULLY BEFORE INVESTING.
