Imagine you want to buy your dream car, but you do not have the required money with you. So, you decide to take a loan which you’ll then repay in easy installments. Hence, you are saved from the pain of paying the entire amount of loan at one go and can easily afford to pay the installments.
In mutual fund investments, a similar principle which is known as Systematic Investment Plan or SIP exists, which makes the investment a cake walk. It is a contemporary method of investing through which you invest in your desired funds on a monthly or quarterly basis. However, it is a more lenient system than EMIs as it is you who have the power to decide the periodical expenditure and not the other party.
MySIPonline is India’s most widely recognized online portal, which besides providing online facilities for making SIPs in best investment plans, also offers a detailed account of the best products trending in the market. With more than 10,000 schemes of 40 different AMCs on its website, it is one of India’s mega online portal and the leader in the northern parts of the country. Voted as the best online financial services portal by the investors for three consecutive years, it is also the fastest growing financial company in India.
Besides providing facilities for investing in the best mutual funds in India, giving online tips and latest updates on different schemes is an integral part of MySIPonline’s functionality. In this write-up, you’d get to know what a SIP is in deep, what are its advantages, plus you’d also be taught how you can get your hands on the best schemes attuned to your needs in three simple steps.
About the SIP
The SIP investment, or simply the SIP, is a system in which the investment amount is dissected into small chunks. The investor can then make payments to his chosen schemes on a periodic basis (either monthly or quarterly) and earn great rewards. With the introduction of the SIP Plans, the investor traffic has increased in manifolds, with an average subscription of a whopping 3 million subscribers, every year.
The Best Advantages of SIP
Breaking Down the Cost
The most important feature of a SIP Plan is that it doesn’t place the burden of making a heavy expenditure at once on the shoulders of the investors. Instead, it allows them to break their budget into small fragments and pay them periodically. This helps in mitigating the financial crisis which one may face while accumulating money for investments.
Combating Mutual Fund Risks
The problem with a lump sum investment is that you are pouring entire budget in the schemes at once. This exposes you to high risk since the market is not certain, and your investments might get hurt if the market plummets down. On the other hand, a SIP investment gives you the opportunity to spread your investment across a longer period, thus enabling your funds to travel through the entire growth cycle and keeping the risk below the radar.
Advantage of Rupee Cost Averaging
The Rupee Cost Averaging is a superb strategy implemented in investing, which eliminates the need to time the market. The SIP allows you to make investments at regular intervals. Hence, you buy fewer units when the prices are high and vice versa. This averages out the cost of your investments and you are left with more money in the end than what you initially started with.
How to Make a Successful Plan with SIP?
With the online services provided by MySIPonline, the task of making an investment in mutual funds through SIP has never been simpler. All you need to do is follow these simple steps, and you’d be done with your investments in no time: -
Make an Account with MySIPonline, absolutely free of charge
Fill in your essential details that include information about your bank, your nominee and your personal identification (AADHAR)
Choose your funds, decide the quantum of SIP and hit the ‘Pay’ button on the secured payment gateway.
And Voila! You are now a proud owner of one of the best investment plans in the country!
