Systematic Investment Plan (SIP)

“Start early, let your investments work for you…”

You will be having numerous plans for the years ahead; plans for your child’s education, plans to buy a new car, a comfortable house, plans for your daughter’s marriage, life after retirement and many more.

But let us ask you, have you invested enough to achieve all that you planned for? To meet these exhaustive expenses of your life like marriages, education or a house, you need to start investing early. Save a small amount every month/quarter with Systematic Investments and look forward to a bright future.

SIP is a regular and a discipline method of investing which yields the optimum results in the long run. Regular investing through good and bad market scenarios helps your investment deliver reasonable returns. Besides discipline, it also calls for patience to see the best long run results. Through SIP your returns are compounded. Compounding refers to generating earnings from previous earnings.

Benefits of SIP:

·         Rupee Cost Averaging

SIP allows you to invest a uniform amount regularly. When the prices are high, your SIP ends up buying less units and when the prices are low, your SIP tends to buy more units, this way you average out your investment cost. The averaged cost will in turn determine the overall return on your investments.

·         Reduces risks

For efficient participation in this volatile market, SIP helps you average out your cost by generating superior returns in the long run. It reduces the risk associated with lump sum investments, thus through SIP an investor can hedge against unexpected fall in the market.

·         Virtues of disciplined investing

Being disciplined - It’s the key to success. Think of each SIP payment as laying a brick. One by one, you’ll see them transform into a building. You earn regularly, you spend regularly...its time you invest regularly too!

·         Wealth Accumulation

Small investments, over a period of time, result in large wealth. The only thing you need to do is start early. The longer your money is invested, the more it will grow (compound) to reach your goals. As an investor, when you extend the investment period, you can earn profit on your current profit, and accumulate more wealth.

·         Advantage of power of compounding

Compounding transforms your investments into an effective income-generating asset. The basic premise behind this concept is that earnings from investments that are not spent but reinvested, over a period of time, can generate greater returns. Here is an example:

No.of Years	Amount Invested (in Rs.)	Rate of Returns
		8%	10%	15%	20%
5	60,000	72,945	76,561	86,331	97,216
10	120,000	180,124	199,864	259,973	339,119
15	180,000	337,606	398,444	609,229	941,053
20	240,000	568,999	718,259	1,311,707	2,438,856
25	300,000	908,991	1,233,325	2,724,642	6,165,871
30	360,000	1,408,551	2,062,843	5,566,559	15,439,875

*1000 INR per month

Did you Notice???

Just an extra five years of investment almost doubles the corpus!

How many years of investments have you missed already?

It’s never too late – start your SIP today...!