20 Jul 2022

Here is the top 6 advantages of investing in SIP - Check out now

Here is the top 6 advantages of investing in SIP - Check out now


SIP is becoming a preferred investment method for retail investors because of its many advantages. It is also represented in the month-to-month SIP capital flows into the mutual fund industry, according to data released by the Association of Mutual Funds in India (AMFI) Over the last five years, there has been an incredibly rapid increase in the number of investors who have taken part in the stock market. The vast majority of stock market investors put their money into mutual funds.

Let us first define a SIP and why it is a good way to invest in mutual funds. To get a better idea of SIPs, you can partner with an experienced mutual fund distributor. 

Find out more about the SIP here! 

Mutual funds provide investors with the Systematic Investment Plan (SIP). 

Here, one can choose to engage in a mutual fund scheme on a routine basis by signing up for standing instruction, in which the investor's fixed quantity is manually deducted from the bank account and involved in the mutual fund scheme as specified during the enrollment process.

Each mutual fund software  has a minimal level of investment amount that you must abide by. There are SIP calculators available on the mutual fund software that can assist you in determining which SIP investment is best suited to your investment goals and objectives.

Here are 6 advantages of investing in SIP that you should know about! 

1.Easy withdrawals 

One of the best SIP benefits is that you will not need to wait for your money when you need it. Your money is not being invested for a specific period of time like a fixed investment. 

You can withdraw your money anytime you need with just a few quick online steps. Depending on your requirements, you can withdraw the amount and the remaining amount will still be invested. However, you can even withdraw the full amount if you want it!

2. Quite easy to pull off! 

It will not be difficult for any investor to begin using SIP. All those who have to do is register for any of the mutual funds' schemes we offer, and the SIP will be set up immediately for them.

Having to sign up for mutual funds schemes can be done on the internet in a matter of a few minutes. Investors can start accessing their mutual fund distributor online accounts on a daily and weekly basis, based on their comfort, once their requests for mutual funds have been handled, which typically takes two to three weeks.

3.Less financial burden every month! 

An investor can start a SIP Investment with as little as Rs. 500 and there is no upper limit. While signing up for a SIP, one can appreciate flexibility when it comes to SIP amount and mutual fund arrangement. SIP allows investors to accumulate wealth without the constraints of starting with a small amount.

Furthermore, because SIP guarantees constant investing, a small amount saved each month can work miracles. For instance, investing Rs. 10,000 per month in a mutual fund scheme for 30 years can result in an investment value of Rs. 2.08 crores, supposing 10% annual returns.

As a result, there is a significant benefit for retail investors to incorporate SIP into their investment path and financial plan.

4.Fulfil your long-term investment goals 

Financial discipline is among the most essential factors in ensuring you can meet your long-term investment objectives. When you engage in a systematic procedure, a predetermined amount is deducted from your bank account on a predetermined date for some predetermined years.

Your investment is not contingent on your ability or willingness. Furthermore, if the market falls, you may be enticed to withdraw your investment. Nevertheless, SIP ensures that the investment continues even if the markets drop, which is critical for meeting your long-term financial objectives.

5.SIPs are flexible 

SIPs are versatile not only because you can start or stop them at any time or miss a payment, but because you can change the SIP quantity. It also allows you to withdraw funds partially or completely incurring no fees or ending the scheme. This way, it can function as emergency savings, with the money credited to your bank account once you demand a withdrawal.

Furthermore, numerous kinds of SIPs, such as ELSS and ULIPS, are tax-saving and insurance-cumulative-investment plans. Some strategies also enable you to invest bi-weekly or fortnightly and to choose a 'Step-up SIP,' that will continue to increase the instalment amount.

6.Less risky 

Mutual Fund Software for IFA and its investments are risky because their performance is determined by a variety of factors over which investors have no control. Nevertheless, with SIPs, these risks are spread out over time, lowering fluctuation in the long run. The risk proportion is especially high when investing in equity funds. SIPs can help you mitigate this risk to a large extent. SIP in an equity mutual fund is your best choice if you want to benefit from the inflation-indexed returns of equities.

To wrap it up! 

So, here are 6 amazing benefits of systematic investment planning (SIP). If you would like to get going and invest in SIPSs then, invest in the best-in-class mutual fund software for your finance needs. For investment in SIP contact nivesh life and get more advice about investment and planning.

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