Do you also want to green your stock market portfolio, in today’s world and those who have no time to leave their work and go to the place to understand about the stock market and INVEST in it, today we will talk in this BLOG about a technique in which your investments Money will continue to grow over time so today we will talk about SIP.
What is SIP?
SIP stands for Systematic Investment Plan Here by using SIP you can safely invest your money in share market every month every week or every fortnight with the help of this SIP your money is automatically deducted from your bank account at regular intervals and invested in mutual funds. SIP which gives good returns after a long time in which you can invest in the share market even with a small amount. Helping them earn more in life.
How SIP works?
The working method of SIP is very simple. Here the principle of regular investment is worked.
1. Choose a mutual fund
From SIP your money is invested in stock market through mutual fund now here while choosing mutual fund you have to manage your interest and risk and choose mutual fund according to your ability.
2. Determine the amount to invest
Here how much you can invest in SIP depends on your monthly income as per our team’s SUGGESTION minimum 5-10% of income should be invested in SIP.
3. The amount is deducted from the bank account
When you do a SIP, the investment amount you decide is automatically deducted from your bank account at regular intervals.
Earnings on your investment grow over time and these SIPs that you start with on a small scale can earn you a decent amount over time.
Why we invest in SIP?
There are many benefits of investing in SIP which are as follows:
1. Small investment big benefit:
In SIB you can start with small investment this amount starts from around 500 per month.
2. Regular investment:
This is how you invest a fixed amount every month with SIP.
3. A cost averaging of Rs:
Even when the market fluctuates over time, SIP buys more units when prices are low and fewer units when prices are high.
4. Power of compounding:
Because of SIP, your regular investment makes your money grow in the long run
5. Flexibility and automation:
SIP is automated so you don’t need to give your time your investment is done automatically on time
happens.
6. Flexibility
You can change SIP stop pose or amount fluctuation at any time.
Types of SIP:
There are different types of SIP according to your body.
1. Regular SIP
With this method, the amount you decide is withheld at regular intervals.
2. Step up SIP
To increase your investment every year or at a fixed time period through this method of SIP.
3. Flexible SIP
According to this method of SIP you can fluctuate the SIP amount as per your budget.
4. Perpetual SIP
This method of SIP which does not have any kind of time limit for SIP.
HOW TO START SIP?
Starting SIP is a very simple process. First of all you have to open a Debate account in whatever application you think is suitable now here what you want to get through SIP like money needed for house purchase retirement or children’s education
Now after deciding your which, choose the right mutual fund that meets your goals. Equity funds are good for long term goals and debt funds are good for short term goals.
Now after deciding the mutual fund decide the right amount according to your income here you can take help of SIB calculator to see the return now you can start your investment from here.
Example for SIP
Let us understand with an example how SIP can give you good returns
Assume you invest 5,000 per month and earn 12% annual return:
-After 10 years your investment is Rs 6 lakh and its total value is 11.61 lakh
-After 20 years it becomes Rs 49.44 lakhs
-After 30 years it becomes Rs 1.76 crores
This is a power of SIP.
Important tips
-Start as early as possible so that your early investment pays off more
-Keep SIP going even when the market is up and down
-Diversify your investments across as many different funds as possible
-Check and revise your investment from time to time Also take care to increase your investment from time to time
conclusion
SIP is your first step to your financial freedom Start as early as possible Starting with small amount can build great wealth in long term So start SIP today and make SIP a part of your life.
Thank you!