In our childhood, we all used to have a piggy bank. We insert the coins that we receive from our parents or relatives. When the piggy bank has been completely filled, we broke it and enjoyed our favorite meal or play with the money we saved on it. But as we grew up they were our needs as well.
To cut off today, this little pig of ours is not able to realize our dreams. There is a need for a plan that can accommodate more money. One option that comes to mind is the bank's savings account. By observing the speed at which you are likely to put money into the savings account will not suffice the future inflation needs. The money should be invested instead of saved. A mutual fund fills the gap between savings and investment. However, an investment fund is a scheme to multiply your money. There is a demand for a method that makes the investment in the plane easy.
Systematic investment plan (SIP) is the required method. SIP also puts coins in the piggy bank. With SIP, you slowly invest in your mutual fund and achieve growth based on your plan. Assuming until your savings reach growth advantage, you will not be able to appease future needs. Therefore, saving for the unexpected in advance and also multiplying money will surely help to be prepared for any unexpected situation.
SIP is an investment strategy that instills the habit of a slow but steady process of investment. The most striking feature of SIP investment is that it can serve as an investment method for any scheme in mutual funds. You can select any plan according to your needs and use SIP to invest your money in a daily, monthly or quarterly. Therefore, the common factor among all schemes may be the investment method.
SIP types based on a period of time
SIP can be distinguished depending on the duration of the investment they serve. The duration of the SIP only depends on the choice of the client. SIP was introduced for the convenience of investors who can not afford to invest a lump sum. Although there is no reference to define SIP because anyone who wants to have a consistent investment process can opt for it. The following classifications are based on the length of SIP:
to. Daily SIP:
Investors who wish to invest on a regular basis can adopt this method. In the daily SIP, customers have the opportunity to invest in their chosen diet for every day. Therefore, the client has to invest a daily nominal amount. This means you may have the privilege of investing with a small amount as Rs 20 /. -. SIP in the value of each penny is the same as any significant amount invested. Therefore, the amount invested by the daily SIP is equally valid for the amount invested by any other type of SIP.
B. Monthly SIP:
As the name implies, monthly SIP is a scheme that makes it easy for you to invest in the plan of your choice each month. This method is suitable for investors who follow a budgeted approach while managing their finances. Investors divide their income into proportions tailored to spending and investment. For example, a person earning INR 25 000 per month could be an INR 20 000 expense. The remaining INR 5,000 can be invested through a monthly SIP.
C. Quarterly SIP:
The fiscal year of our country is divided into four parts. Each quarter is a period of three months. Customers who invest to opt for SIP must pay their quarterly investment every three months. This diet can be considered by investors who are not very regular in their investment, but intend to do so at less frequent intervals.
SIP and technology
Apart from the various types of SIP available to investors in technology that has given a new twist. With the introduction of free flow directly from the investor account, the task has simplified investment to a remarkable degree. The automatic debit option facilitates the investor to give a permanent order to the bank to charge the amount on a fixed date in which the premium of the policy is due. In this way, the customer can be relieved of stresses memorizing expiration dates. The work will be done by your bank, and a receipt will be sent by SMS alert or email.
Start the SIP today and enjoy the benefits benefits
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