Mutual funds are gaining popularity among the best investment options available for investors. Mutual funds also have various types which are to be selected as per the need and availability of funds. Systematic Investment Plan (SIP) is one such option amongst it that has shown a remarkable growth. The minimum amount which a person can invest in SIP is ₹500, thereby breaking the false belief that one needs to have a large amount of savings to invest in mutual funds SIP.
Mutual fund SIP can be said as a future benefit derived by a disciplined investment made today. It is preferred over equity SIP because as mutual funds are diversified by various securities, it lowers the risk factor & reduces the research for individual stocks. The three remarkable features of SIP are – Ease of investing, compounding and averaging of the rupee cost. While the benefits of SIP include – regularity in savings, long-term benefits, and flexibility. The early one starts investing in it the more benefits will be earned by him.
As the no. of people investing in mutual funds are increasing, the companies are providing more facilities in its investment plan. Some of them are noted below:
- Step-up SIP – This option is provided for the ones who wish to increase the amount of investment after some period of time.
- Pause SIP – Everyone faces a period of crisis at some point in time. Some medical emergencies, loosing of job, Urgent needs etc. are some of them. At such times one can pause the SIP plan for a fixed period.
- Flex SIP – this form is suitable for the ones with uncertainty in their income.
- Perpetual SIP – in this form one doesn’t have to mention the end date of the SIP plan to avoid any inconvenience at the end of the SIP. The investor can end such plan by giving a written communication as per her convenience.
SIPs are therefore not only a safe choice but easy an option for investment. In case of any difficulties, one can opt for companies such as Quantum who provide overall guidance in such investments.