SIP stands for Systematic Investment Plan in which a fixed amount is deducted every month i.e. regularly from one’s saving account in the preferred mutual fund scheme that one has selected. As per one’s convenience, a person can invest in short-term, medium-term, or long-term money making but as a matter of fact, the long-term goals are responsible for creating a higher level of incentives. Then the most crucial step that comes is to select the right mutual fund as per one’s needs and capabilities and then fill out the KYC to complete all the necessary documentation. At last now one can easily start submitting the amount very easily even with the help of an online demat account.
These days a lot of youngsters are even investing in SIP as it is proven to be very profitable for them and the few advantages that allure them to invest in it are as follows:
- Because of the low-cost investment policy, it becomes a very appropriate source for youngsters to invest and avail huge profits at a later level. It can start with a minimum deposit of as less as 500 rs. Per month which young people can easily invest in.
- Another advantage is that these days we are moving towards a digital global world and because SIP is very easy to track due to its online availability it’s very easy for youngsters to remain updated about their money status.
- Youngsters have this zeal to earn more money in a short tenure and to fulfill that comes the special feature of SIP i.e. Rupee Cost Averaging in which an individual buys more units when the market is low and buys fewer units when the market is high therefore reducing the cost of investment from personal and in result getting a higher level of gains.
- Another important feature is that there is no fixed tenure for which one has to compulsorily keep giving the amount every month, because as one knows that mutual funds are subject to market risks so one can easily withdraw the money amount whenever they feel like and even reduce or increase the money amount that they are submitting every month in case of long term policy.
- Also, it provides better results because money is provided every month so provides just double the rates as compared to what people submit as a one-time installment and if seen as per stats then they provide just double the return so making the individual earn a high amount of profits.
- As it is a risky investment market so is generally seen that youngsters between the age of 20 to 25 more commonly invest in this sector because the money involved doesn’t look big in amount so are ready to take risks in the allurement of earning more.
One of the biggest profitable factors is when one starts earning this early and does savings in the right direction then they develop a mindset that how to save their money and earn in the longer term when they grow up. This naturally helps in inculcating a stress-free financial life in the mere future which is the biggest headache for our current generation.
7 FACTORS TO CONSIDER BEFORE APPLYING FOR AN EDUCATIONAL LOAN
Disclaimer: BannerAds & Links of Brokers offering Demat Accounts are affiliated.
