Systematic Investment Plan — One of the Best and Reliable Investment Alternatives
SIP (Systematic investment plan) is a relatively flexible investment instrument for the investors allowing them to invest small amount of their money on some special mutual funds. It is, in fact, an ideal approach to enter the equity market as it creates a distinctive investment discipline for you. Furthermore, SIPs are capable of achieving all your long-term financial objectives by simply investing a small sum of money monthly.
Key features of SIPs
If you are afraid of sticking to the long-term commitments, of insurance plans or PPFs, the SIPs are certainly the best investment plan for you. Here are the key features of such investment plans that can draw your attention in terms of flexibility –
· They are usually open-ended investment alternatives that allow you to invest as well as withdraw your money at any point of time.
· In order to run your SIP, you don’t have to stick to any fixed tenor. In fact, once you fix the tenor, you can either stop or continue the plan even after the completion of your tenor by simply placing a request to your mutual fund firm.
· Either partial or full withdrawal of your investment is possible in the systematic investment plan.
· Furthermore, you are also open with the flexibility of decreasing or increasing the SIP amount as per your necessity.
Possible benefits of SIPs
Being a common investor, it is likely that you may not have sufficient time as well as resources to plan your savings. In this situation, SIPs turn out to be the most viable alternative for you by rendering the following key benefits –
· Due to its basic principle of rupee cost averaging, it tremendously reduces the market risk.
· You can initially start investing in SIPs with a small sum of money without necessarily timing the situation of market.
· You can easily align all your long-term goals with the help of SIPs.
· They are the most disciplined approach for investing your hard-earned money thereby enabling you to act practically rather than emotionally.
Finding the right company for investment
Once you are clear of your decision in your mind to invest in SIPs, the next big question that arises is to find the right company offering the best investment plan. Making a preference for such companies that you really want is the basic thumb rule for this. The market has some great alternatives of stocks available for SIP investment mode. You can accumulate such stocks in small and simple steps as they offer long-term value.
The companies that show a progressive growth in its track record over the years are also ideal alternatives to rely upon. They offer ethical, stable and solid management of your stocks thereby promising long-term prospects of growth.
Summary: Systematic investment plan is surely the most beneficial and reliable mode of investment for both new investors as well as master players promising to offer fulfillment of all your long-term financial objectives.