An Insightful Detail About Systematic Investment Plan (SIP) - Listing Directory

Mutual funds and trading always go hand in hand in the market. You can thus find a SIP Advisor in Mumbai, who are very common and will explain to you the importance of knowing about the details of SIP and more. SIP Advisor in Mumbai can also be hunted online and can help you with the details of all about SIP. After having our conversation regarding the similar topic and after a consultation many people said that taking up SIP Advisor in Mumbai, is a well organized and an accurate decision. Thus, today we will be discussing more about SIP. 

SIP mainly stands for Systematic Investment Plan where one can regularly invest a fixed amount in the preferred mutual fund scheme. However, here a fixed amount is usually deducted each month from the savings account and then this amount is then invested in the mutual fund of your choice.

Is one time investment better than SIP?

●       Tenor: In SIP investment there can be a withdrawal anytime without any monetary loss, however in one time investment, a sudden withdrawal might attract a set of penalties, charges or might just not be allowed.

●       Earnings: In SIP you can earn better than the market lows which are on the move as the investment yields higher returns because of the power of the compounding, but in single investment it earns better than the market highs, where the investment yields fixed incomes which are lower than the SIP.

●       Protection from market volatility: In SIP you can protect your investment from any potential market crash, but in a one-time investment it is not usually cushioned against the market volatility as this investment could lead towards a big loss as the market can also crash.

●       Knowledge of the market: Now in SIP it is a simple plan where you do not require to have a mere knowledge of the market, but in the case of one time investment you may require the help of an expert counsel to learn the current status of the market, whether or not it would be safe to move forward or not.

How to invest in SIP?

●       You first need to identify your financial and investment goals whether the wealth creation is for a short term, medium term or for a long term. Then, you can start investing in SIP as per your goals, but also remember that the longer duration SIP thus, yields a higher return.

●       Selecting the right mutual fund is also a must as you must then zero in on the accurate SIP mutual fund which is in complete consonance with one’s financial goals, then you can start comparing the different SIP’s and select the best one to go with.

●       Contact a suitable financial institution is a must as you need to inform them about your decision to invest in the specific SIP, thus one must fill the form and then complete the KYC documentation.

●       And finally when your research will be completed you can go ahead and invest.