Reasons SIP Investments Are the Best Type of Investments

Using a systematic investment plan to invest in mutual funds has not only become widely popular but is also considered as a wise move by financial experts.

SIP or Systematic Investment Plan is a technique of investing money in mutual funds where you do not have pay a lump sum amount. In an SIP, you invest a fixed amount every month in a mutual fund of your choice. The set up is easy and hassle free since the already fixed amount is debited automatically from your bank account. Here’s why SIP investments are the smartest decision you can make with regards to finance.

You Can Start New SIPs To Save More

SIP does not limit your savings. You can invest in as many SIPs you want if you have the money. You can always start new SIP plans either in your already existing mutual fund or in different one as per your choice. This also lead you into saving more money invested for your future.

Market Timing Does Not Matter

Investing money for the future usually becomes a headache. There are so many things you need to factor in including the rate and time of the market. It is usually advised to never invest in a market that is inflated. However, SIP plans do not need for you to worry about the market timing. When the market is high, your SIPs would bring in less numbers of mutual fund units. Similarly, when the market goes low, the same SIP amount would fetch you more mutual fund units.

Skipping SIP Payments

It can’t get better than this. If you miss a month’s payment on your SIP for some reason, your SIP investment will not stop and continue without giving you any problems for the next month. No charges or fine will be imposed upon you making the process stress free.

You Can Stop Anytime

No fines would be levied against you if you wake up and decide to stop your SIP plan one sudden day. In order to stop, you have to simply opt out of the plan. After you decide to stop your SIP plan, you can either get back the invested amount or you can keep it invested in your chosen mutual fund. This is better than recurring deposits because stopping a RD would make you pay a fine and here you are practically let go without any commitment.