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    Why Best Mutual Funds for SIP Makes sense for You

    Want to invest in stock market but don’t have the knowledge or the time to track the markets? Scared of the volatility in the equity markets? Best Mutual Funds for SIP can be an excellent option for you. Let us have a look at how SIP investment makes sense. 

    The equity markets in India and its prodigious growth in the past decade is now attracting investors in heaps. But while there is an increasing interest in the equity markets in the country, there is no shortage of people who want to invest but do not have the knowledge or time to track the market activities. Moreover, the fear of volatility is widespread in the country. 

    Investing in mutual funds through SIP is an excellent way for such investors to involve themselves in the market indirectly. No matter what kind of investor you are or what your investment goal or risk appetite is, there is now a mutual fund for everyone. Let us have a look at how SIP in mutual funds makes a lot of sense for every investor. 

    ·         Protection from Market Volatility

    The volatility and uncertainty is the main reason which keeps a lot of people away from the equity markets. The Best Mutual Funds for SIP effectively eliminates this problem. With SIP, you are no longer required to time the markets. You simply invest a fixed amount every irrespective of whether the market is in an uptrend or downtrend. 

    The only difference would be that you’ll get fewer units when the markets are high and more units when the markets are falling. On the long run, rupee cost averaging would work its magic and create a considerable investment portfolio for you. 

    ·         Flexibility and Convenience

    The mutual fund industry in India has dramatically improved in the past few years. You can now start investing with as little as Rs. 500 in a fund of your choice. There are now many different types of funds to suit different investors, their goals and risk appetite. Moreover, apart from the tax-saving funds, all the other funds do not have any lock-in period. 

    You can invest any time and redeem the units anytime you like. Moreover, you also get the option to switch to another fund if you believe another fund would perform better shortly. 

    ·         Makes you a Disciplined Investor

    Ask any seasoned investor, and he would agree that discipline is essential to be a successful investor. It is with SIP that discipline can be inculcated in investors. 

    A fixed amount would be invested in the funds every month, and if the SIP is continued for a long-term, the biggest of financial goals can be effectively achieved. 

    ·         Helps you Start Invest at an Early Age

    As the minimum investment amount is very low in mutual funds through SIP, it is much easier for people to start investing at an early age. If you know anything about the power of compounding, you can surely understand the difference between when you start investing at 25 and 35. 

    If compounding is an alien term to you, a SIP of Rs. 5,000 in a top-performing equity fund can generate a difference of lakhs of rupees if you start investing when you are 25 years old versus when you start investing at 35. 

    Investing is something that a lot of people would want to do, but most of us simply push the idea to a later date. Avoid this mistake and start searching for a mutual fund which suits you and begins a SIP as soon as possible.

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