This is an effective process to create money for long run. If you want to invest for long time then this is going to be the most attractive and simple way to make money. In this era of lockdown, the economy of whole world had shaken. If you have plan of SIP investment then you may manage to invest in this under the last date. So SIP can make good role so that your investment and earning continues. Let us see it in detail.
This will make a habit of saving
Whenever the matter of economy occurs then the matter of discipline appears. If you have SIP then there is discipline to save money. This is the time when you saved money will be going to help you to stand. Small investments like EMIs will help you to make a great success in future. Every installment will make a strong path to build your future.
Help to begin with small amounts
If you prefer SIP for investment then it can be started in low amount. There is no requirement of huge amount. You can start it in almost Rs. 500 per month. So this can be started easily and may continue for long time. Sometimes, if you have scarcity of money then also you can manage it.
Learn with a comparison
Suppose you have to buy a mobile phone, then you may prefer to pay it in loan. But if you are going to buy a luxury car then you will prefer to take loan because of the high price. In the same way, if you want to do good amount of investment but in adding less then this is beneficial. You can manage small amounts easily and continuously. So this can be helpful to you.
This has flexibility
The SIP provides flexibility. If you have money scarcity then you are allowed to reduce your amount or even can pause it. But, this will come with some tenure, after that tenure this will be allowed. So this can be very helpful in this current scenario.
Avoids the inconvenient of timing
SIP provides averaging of money so the timing of entry can be avoided. The volatility will be ineffective in this case so it can avoid. This can be very helpful for the one who have lots of other work and don’t have much expertise in the field of investment.
SIPs are the best way to invest when you are doing this with fix savings. But, you can add some amount with time to time. So SIPs are helpful for maximum people.
Helpful for whom
- One who has started earning in recent days and don’t have savings. But, want to make a good saving and investment for the coming days. Try to start as early as possible to make good progress in perfect time.
- If doesn’t have idea about the market then this is very beneficial for you as much expertise is not required.
- If you are looking for long time investment. At least for 5 years, then this would be quite helpful to you.
Not for those
- Already have good expertise in this field and has lot of savings.
- If you are not planning for long term. If you are in mood to invest for short term i.e. up to 4 years investment then this would not be good for you.
Well, this are some important points discussed about the SIP. I hope this would be helpful for you. In my opinion after observing the market, you may try to invest some additional money to this. This will help you to top up the investment. So this is the analysis of the topic. I hope now you will be able to conclude your doubt.