You may invest as little as you want and for as long as you want with SIP. Many of us make the effort, but then let it wither because we failed to give it the care it needed to flourish.
For those with a fixed income and middle class financial situation, SIP is a highly recommended method of investing in mutual funds. But if your pay increases, you may increase the amount you put into your SIP.
You may begin investing in a systematic investment plan (SIP) with as little as Rs 500, but if you want to amass significant wealth over time, you'll need to raise your commitment. Imagine you wanted to put away Rs 1,000 over the course of three years. But your efforts have earned you a 25% pay increase. In this case, you can afford to waste the extra cash. However, increasing current SIP by allocating the additional funds to SIP would be the wiser course of action.
Increasing your SIP contribution has several advantages. We've listed them below.
This means that when investors add to the principle, both the interest income and the additional principal benefit. As a result, profits have increased significantly.
Inflation protection is not available through conventional savings plans. But by contributing more to your SIP, which grows at a compound rate, you may set yourself up with a safety net against unexpected costs.
If your monthly income improves as a result of an increase in your salary, now is the time to add to your SIP. If you raise your investment along the line of your income and spending, you won't have to change the way you live. If you have earned a bonus, you may choose to invest the extra cash in a liquid fund for the time being before establishing a systematic transfer plan (STP) to invest in stocks.