Investors’ preference for a systematic investment plan (SIP) remains strong. SIPs help to build a sizeable wealth in the long term with the monthly flow in the mutual fund industry.
As per the Association of Mutual Funds in India (AMFI), SIPs registered an all-time high of Rs 12,693 crore in August 2022. Since May 2022, mutual funds have witnessed an inflow of over Rs 12,000 crore.
SIPs remain a healthy financial habit to boost savings as it also remains a suitable tax-saving investment instrument.
Investors can look forward to reaping long-term returns with SIP through investment in a disciplined manner. With SIP, an investor can invest a fixed fund at predefined intervals towards a selected mutual fund scheme.
A SIP facility can be initiated with a fixed minimum amount of as low as Rs 500. The pre-defined intervals of payment towards SIP are flexible and can be activated on a weekly, monthly, quarterly, semi-annually, or annual basis.
By taking the SIP route to investments, the investor invests in a time-bound manner without worrying about the market dynamics and stands to benefit in the long run due to rupee average costing and the power of compounding.
An investor can enter or exit a SIP facility without hassle.
Rajiv is an independent editorial consultant for the last decade. Prior to this, he worked as a full-time journalist associated with various prominent print media houses. In his spare time, he loves to paint on canvas.