There are many ways for investing money wisely and getting a huge amount back after a couple of years. Out of them, one that is very attractive, offers significant returns, and particularly favoured by the salaried class is the Systematic Investment Plan (SIP). An SIP can be initiated in Stocks, Mutual Funds, Gold and ETFs.
Systematic Investment Plan (SIP) is done in open-ended funds, where money can be invested regularly. You can also make a partial withdrawal of the money during the investment tenure. Furthermore, if you feel more money should be invested into the SIP plans at the middle of the investment tenure, you can do this without hassle.
Benefits of Investing into SIP:
SIPs do not require you to have a huge knowledge of the stock market to make an investment. When the price of investment units goes down, you will be buying more, while doing the opposite when the price is high.
Here is a look at what you benefit by investing into SIP:
- Make regular investments every month and earn a good amount of money at the end of the investment period.
- Get a disciplined approach to saving money and set aside money for investment rather than expenses.
- Start with a small amount of money every month, so that there is no huge pressure to keep aside a large sum, which will affect important expenses.
- Money returned after the investment tenure is huge, enough for some to settle down comfortably in their life.
- You don’t have to check the market time to initiate investment and can achieve long-term financial goals easily through it.
Prepare Wisely for Life’s Commitments!
One of the key qualities about SIPs is that longer the investment duration, the better is the return. So, if you are seeking to get a huge amount of money at the end of an investment period, opt for an SIP with a long tenure. The large lump sum gained can be used for important expenses that happen at later stages in life.
Traditionally, people in the salaried class used to invest their money in fixed deposits or recurring deposits. These were considered safe means of growing their money. They also put their money into insurance plans so that they could get enough returns to keep up with expenses in their old age.
SIPs have opened up a whole new world of investment opportunities and the chance for someone in the salaried class to enjoy a vast amount of money at the end of big investment tenure. When you compare the amount of money earned through an SIP with that of a recurring deposit for the same number of years, you will find the SIP to offer significantly greater returns, thus giving more money than what you expected.
Regularly investing into SIPs at an early age gives the benefit of acquiring more wealth at a later stage in your life, when you are likely to incur more expenses.