Aspirations give
shape to our dreams. If we work towards them, we can convert our dreams into
realities. Building wealth is no different. Systematic Investment Plans can
help you to work towards your Financial Nirvana. It is a unique tool
which can help an investor to achieve their investment objectives with minimum
efforts without worrying about the roller coaster of the financial markets.
Wealth Creation Mantra:
Dedication +
Discipline = Fulfilment of Aspirations.
Let us look at the
ABCD of Systematic Investment Plans (SIPs) inspired by the oldest AMC (now
quant Mutual) and how these features help you to gain financial freedom.
·
A - Accomplish Life Goals: The ultimate objective
of investing is to achieve life goals be it long / medium or short term. Short
term goals like buying a bike or medium-term goals like buying a house or
long-term planning for retirement can be achieved through SIPs. Investing small
amounts regularly over a period is the key to make one’s dreams come true.
·
B - Balanced Approach: Through a SIP, you can
override the financial roller coaster easily. Be it Bull phase or Bear,
balanced approach of systematically investing a fixed amount every month
irrespectively is called Dollar/Rupee Cost Averaging. To simplify, when markets
are very high your SIP instalment is purchasing fewer units where as in the
same amount, during falling markets you are buying more units in turn your
acquisition cost averages out. Hai na
Simple!!
·
C - Compounding Effect: With a fixed approach
at investing with minimal efforts is the key feature of SIPs. Power of
compounding works by growing your wealth exponentially over a period of time. Systematic
Investment Plans (SIPs) is an effective mean to beat market volatility and
benefit from power of compounding. Just a one-time
effort to register SIP is needed and you can reap the benefits over a period of
time.
·
D - Disciplined Approach towards
Savings: Regular investing is the key inbuilt feature of the Systematic Investment Plans (SIPs). Regular
investing is the key Mantra of investing success however we tend to
ignore it due to our other commitments. Systematic Investment Plans (SIPs) help
you to ingrain a habit of regular investing as they require you to invest fixed
amounts regularly for a pre-defined period. Based on your risk appetite and
investable surplus you choose the scheme and amount of investment. Regular
investing for long term is like a Kulp-Vriksha which can fulfil your
life Aspirations
With Systematic Investment Plans (SIPs) you
can think big dream big and achieve big, provided you do you E & F timely:
Execution and Focus.
Timely Execution
of your dream plans with a razor sharp Focus
on your goals. Plan your short, medium- and long-term goals and start your SIP
today.
So that was a good ABCDEF
of Systematic Investment Plans (SIPs). The
best Mutual fund in India to invest,
that we could recommend you at this time (Covid19 era June-July 2020) is : www.quantmutual.com They use predictive analytics, predictive
modelling & behavioral finance and their funds overall specially the money
market fund has been outperforming not just the Index but the competitors too.
