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MARKET SNAPSHOT

  • INDIAN
  • GLOBAL
  • CURRENCY
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  • TOP GAINERS
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MARKET SNAPSHOT

  • INDIAN
  • GLOBAL
  • BSE SENSEX
    1. 1443442
    2. -965.56
    3. 1443 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • Last Update:09 Nov,2017
  • Show All
  • CURRENCY
  • COMMODITIES
  • YEN TO IND
    1. 1443442
    2. -965.56
    3. 1443 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • BSE SENSEX
    1. 1443442
    2. -1000.56
    3. 30000 %
  • Last Update:09 Nov,2017
  • Show All
  • TOP GAINERS
  • TOP LOSERS
  • 52 WEEK HIGH
  • 52 WEEK LOW
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SIP Meaning

Everyone of us aspire to fulfill our dreams and have many ways to achieve it. But the important thing is to find the best means. Share market investing can be done other than just investing in banks or land. Interest rate from banks are not attractive due to rising inflation rates and buying or selling land has become a cumbersome process due to the legalities and processes involved. The liquidity factor is high in case of share market investments. Mutual funds, equity, bonds, commodity, currency, etc. are among the various financial products offered by the stock market. Let us understand what is the meaning of SIP, features and the benefits through this article.

SIP (Systematic Investment Plan) is a mutual fund tool and is one of the easiest ways through which any common man can enter the stock market. We always have the habit of postponing our investment plans for some reason or the other. It’s always essential to give more time for your money to grow. The earlier you start investing, the more you can save for your future. Like you save money in a recurring deposit, you invest money in SIP for a long term basis. There are unique features of SIP which make it fare better than a recurring deposit.

Financial discipline i.e. investing should become a major and inevitable part of your everyday life. SIP is sure to bring about a sea change in the way you manage your finances. One can choose the time interval of investing based on his choice such as monthly, quarterly, etc. Next it is important to know what is SIP in mutual fund. Investments in mutual fund can be done in 2 ways. i.e. lumpsum and SIP. Lumpsum is wherein you invest the entire amount in one go. SIP is when you invest particular amount on a periodic basis. What is SIP investment and why it is so special?

SIP Features

  • Rupee Cost Averaging
  • Compounding Effect
  • Flexibility
SIP Meaning

Rupee cost averaging:

NAV (Net Asset Value) is the price one pays for a SIP unit and this keeps changing according to market fluctuations. As an investor buys SIP units periodically on varying NAV basis, the average cost of a SIP unit gets lowered.

Compounding effect:

This simply means that the principal you invest keeps growing as you re-invest the returns generated from the investment. As this process is done for a longer time period, one can start accumulating substantial amount of wealth. That’s why the important mantra of investing is to start investing at a young age.

Flexibility:

Anybody can enter the SIP market as the minimum amount required to begin your investment is Rs. 500 only. There are options that allow you to pause a SIP investment if you face any financial crunch and it also enables you to resume investing as per your convenience.

And now it’s time to learn what is SIP account? You can start investing in SIP online in a very simple manner. Auto debit facility in SIP ensures an easy process of investing. When you fix upon the amount and time interval, particular amount will get debited from your bank account and it will be paid to the SIP fund as per your choice at the pre-set time interval.

The best tool to fight market volatility:

Investors hurry and exit SIP during times of market volatility. But it is the right time to accumulate SIP units and it is a proven fact that the longer you hold your SIP, the probability of getting better returns increases.

Begin to invest in SIP to realize your life goals. Happy Investing!


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