Smart Investment Practise- what we call! Is a smart financial planning tool that helps us to create wealth.
SIP ‘Systematic Investment Plan’ is beautiful replacement to RD (Recurring Deposits), which is a long period Investment at least for 5 years and we can expect HIGHER Tax Free returns. The best way to invest in Equity is through SIP’s, where we invest small amount on monthly basis. SIP average our investment cost and staying for long term take care the volatility of markets. Hence higher rate of returns are generated.
Disciplined- It works on pre fixed schedule and keeps our investment free from basic emotional nature of fear and greed. Money is invested in without looking in up or down of market and units are accumulated.
Power of Compounding – Small investments Big Returns! Small investments for long time, start earning returns on returns, which is called Compounding. Compounding maximizes the earnings on our investments. So start early and stay invested.
Rupee Cost Averaging- SIP is the best way to average the Rupee Cost and convert risk to calculated risk. By investing fixed amount on monthly basis, we get more units when the prices are low and fewer units when the prices are high. This way average price of per unit comes down and more returns are generated.
No need to time the market, Duration is the key– Stay invested for longer period and benefit from volatility! We keep investing regularly with specific amount and dates. Due to this automated process we average out our purchase price by covering the ups and downs (volatility) of market and in a longer period we make returns.