A guide on systematic investment planning

A guide on systematic investment planning

We usually talk about the large investor but forget that there are many small investors as well in the market. If these small investors invest a small amount consecutively for the long-term will end up gaining good returns. Some prefer to invest a particular amount every month, quarterly or annually in mutual funds. The amount will get debited automatically from your bank account. Such investments are called systematic investment planning (SIP). This is one of the popular methods of investing, especially for small investors. This type will always help in generating the habit of savings and investments among people.

Also, this is an ideal form of investment if you are new in the investment world. If we compare it with the equity investments, SIP holds fewer market risks and can generate high returns, if it is for the long term. also, you can invest more when unit prices are low and vice versa, so this turns out to be a balanced investment for small investors. The main reason why this is given much preference than others is that it is easy to use especially for those who are not great at investing, a flexible investment as you can continue and discontinue anytime, ideal for those who do not want to make lump sum payment, no additional charges using SIP mutual fund scheme and you do not need to be a professional while investing in SIP. This act as a huge relief for those especially those who do not want to get into the turbulence of the market. You can easily register it online in a hassle-free manner. To compute the total amount and to know the estimated returns, you can take the help of the SIP calculator. To know more about it, refer to the following points:

  • Simple to use- The SIP calculator is very basic and easy to use. With the help of this, you will be able to quickly derive the returns against every investment-monthly, quarterly or annually. Estimating the returns will be very easy which will help you in decision making.
  • No extra information- You just need to enter some basic information related to SIP and you are good to go. You just have to add the investor’s monthly investments, tenure of investment and rate of returns. The result will be in front of you within seconds, making it a hassle-free process.
  • Online- You will easily get to use this tool online and that of free of cost just make sure to go on the right online platform for the SIP calculator.
  • Best for new investors- Usually new investors are worried about the investments. This is a great tool to assure the investors about the returns. This will also help them to understand the returns on various amounts invested by them in SIP.

So above are some advantages of using a SIP calculator. If you are looking for one, you can visit the ‘5paisa’ website and you can use this calculator without paying any charges. Know that SIP is one of the most dependable investments if you have small savings and want some financial benefits.

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