In the past, building a corpus of wealth over time was considered a far-fetched dream for a middle-class salaried employee. Only a select few succeeded with strict and disciplined savings. But today, Systematic Investment Plans (SIPs) have made it possible for salaried employees to dream of and aim to achieve a substantial corpus over time, thanks to the power of compounding.
For many people investing for the first time, a 250 rupees SIP may feel comfortable and accessible. Just by committing to this pocket-friendly amount, you can start on the path of disciplined savings without putting too much stress on your budget. This method works in favour of investors who want to begin investing in an SIP, as it lowers the barrier to entry, making it a more accessible option.
A convenient way to begin investing in mutual funds is through a Systematic Investment Plan (SIP). In fact, you can invest with an SIP starting at just Rs.1,000 per month. This modest yet significant amount can serve as the starting point for your financial journey. Among the many reputable options out there, UTI Mutual Fund is a trusted name, offering investors a chance to begin an SIP investment at 1,000 per month and stay on track with their financial objectives.
When you start your investment journey, the first step may be challenging. As today’s new-age investors have a plethora of options to choose from, deciding on a suitable investment approach is crucial. In this regard, a Systematic Investment Plan (SIP) provides a simple, affordable and effective mode to invest in mutual funds and grow your wealth over time.
An investor can invest in mutual funds in a lump sum or through Systematic Investment Plans (SIPs). While SIP involves making regular investments into mutual funds, lumpsum investing refers to investing a large amount in a single transaction. Each of the investing modes has its pros and cons. The investors must choose a specific investment mode based on their financial goals, availability of investible funds, and risk appetite.
Investing in mutual funds through Systematic Investment Plans (SIPs) helps the investors to inculcate financial discipline into their lives by allowing them to invest regularly in the mutual fund scheme of their choice. The investors may choose the mutual fund scheme as per their risk appetite, financial goals, and investment horizon, and register a SIP therein to make periodic investments.
Equity Linked Savings Schemes (ELSS) is one of the investment instruments that allows the investors to avail a tax benefit up to Rs. 1.50 lakhs from the total gross income under Section 80C of the Income Tax Act 1961. Owing to its inherent benefits of lowest lock-in period of three years amongst all the eligible investment options and potential of higher returns, ELSS has been gaining immense popularity.
Prudent financial planning involves listing down the financial priorities and then steadily working towards achieving the financial goals in the desired time frame. While you may have already taken your first step towards investing towards a healthy financial future by registering a Systematic Investment Plan (SIP), it is equally important to review the investment periodically. The performance review of the investment portfolio would allow you to align your financial priorities and financial goals.
Systematic Investment Plan (SIP) allows you to invest a fixed amount into mutual fund schemes on a pre-determined periodic frequency. You can instruct the bank to auto-debit the from your account specified dates and invest in the pre-specified mutual fund scheme. This investment cycle happens automatically on a recurring basis irrespective of the market condition. This helps an individual to consistently move towards creating an investment corpus and take a step closer to achieve his/ her financial goals.
