Planning Financial Freedom through Systematic Investment Plan (SIP)
Blog By Chithra Prabhakaran | Aug 05 2018

Albert Einstein once said, “Compound interest is the eighth wonder of the world. He, who understands it, earns it, he who doesn't, pays it.” The rule for compounding is simple - the sooner you start investing, the more time your money has, to grow.

Imparting financial discipline in your life maybe the toughest decision you will ever have to make, probably tougher than choosing the most delicious pizza. On a serious note, the earlier you start investing money, more time it will have to grow.

All of us search for hassle-free and convenient ways to invest our money. The solution is simple. A Systematic Investment Plan (SIP) is what you are looking for.

Systematic Investment Plan is a smart way of investing money through mutual funds. It involves depositing a pre-determined amount at a regular interval (weekly, monthly, quarterly, etc.) and is currently the most flexible and high return earning investment there is, today.

All you have to do is a little bit of research and choose a convenient mutual fund scheme and start an account. Your money will be auto-debited from your bank account and will be invested in your selected scheme. Sounds easy, right?



SIP works simply because every time you invest money, additional units of the scheme are purchased at the market rate and added to your account. Hence, units are bought at different rates and investors benefit from Rupee-Cost Averaging and the Power of Compounding. Your money fetches more units when the price is low and lesser when the price is high.

Starting a Systematic Investment Plan is easy:

  1. Choose your fund house and submit your Know Your Customer (KYC) documents such as your ID proofs through their online portal.
  2. Visit the mutual fund website and create an account.
  3. Log in to your account, select the mutual fund scheme, choose an SIP date and submit your request.
  4. Congratulations on starting your account and sit back and relax while your wealth multiplies.

Due to rupee-cost averaging and the power of compounding, SIPs have the potential to deliver attractive returns over a long investment horizon.

SIPs can even be customised based on the investor’s requirements. Many fund houses allow investors to invest monthly, bi-monthly and fortnightly, according to their convenience

A Systematic Investment Plan is a planned approach towards investments and helps you inculcate the habit of saving and building wealth and maximisation of returns for the future.

Our hard earned money is safe with SIP simply because it offers the advantages of high returns with minimum hassle, flexibility, long term gains and it gives us the opportunity of disciplined saving.

So what are you waiting for?  Start investing today.

Blog By Chithra Prabhakaran

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