Todos tenemos un deseo común, es decir, ‘volvernos financieramente fuertes’. But just thinking about it will not fulfill it; we will have to work hard to achieve the same. So, before moving towards it, we need to know what can help us get there, to make the path easier. Everyone is aware that only money has the power to create money. So Savings We Owe Sources of Reaching Financial Goals and Yep is the way to do the same.
What is SIP?
The SIP, which stands for the Systematic Investment Plan, is a way of investing in the mutual fund schemes. Under this, it is required to put the amount of money at regular intervals which is automatically debited from bank accounts and placed in various investment schemes. It has a benefit package and provides the following advantages to an investor:
- Small payment amount: One can start putting their money into diversified projects with just Rs 500 or Rs 1000, through SIP, which cause no charge.
- Periodic Drummer:
- Debit Money Automatically:
- The power of compounding: In investing, we receive interest on a specific rate. It can be a simple or compound interest rate. In SIP, investments earn returns on a compounded basis. According to which, the interest earned on the main love also produces, that is, “interest for interest.” For example, you invest Rs 20,000 at 10% simple interest for 5 years. On the due date, you will receive an amount equal to Rs 30,000, while in the case of compound interest, the value of the investment on the due date will be Rs 32,210.20. Consequently, it is more beneficial for the investor.
- Average cost in rupees: Cada esquema bajo el SIP tiene un valor liquidativo (NAV), que es básicamente el precio unitario de ese esquema, sobre la base del cual se asignan las unidades al inversionista. Un NAV más bajo significa más unidades y viceversa. As regularly changing, every time the investor’s money is put in the plan, it obtains a different number of units. Por lo tanto, el costo promedio de inversión se reduce. Therefore, investment in SIP is low cost compared to others.
In addition to the main benefits above, SIP also provides the following:
- flexibility
- convenience
- tax savings
- Diversification
- Wide choice
Consequently, if one wishes to achieve financial growth and experience riches, SIP (Systematic Investment Plan) is one of the best choices to make. It is capable of meeting the requirements of all investors and is beneficial to all.
In the Study of Economics We Come to Know the Power of Saving and its relationship with investments. For the growth of a country’s economy, investment plays a crucial role that leads to the overall development of its citizens. Therefore, we can conclude here that by investing our savings in the SIP mutual fund schemes, we can achieve our goal of experiencing financial freedom.