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What Makes SIP an Attractive Investment Option?

SIP allows investors to make regular, payments into mutual fund for a period of time instead of one-time payment. SIP is solution for long term wealth creation.<br>Visit: https://www.ajmeraxchange.co.in/blogs/what-makes-sip-an-attractive-investment-option<br>

Devangthakkar
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What Makes SIP an Attractive Investment Option?

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  1. What Makes SIP An Attractive Investment Option?

  2. Description Systematic Investment Plans (SIPs) have become a rage for domestic retail investors in last few years. Investing in financial markets through mutual funds schemes is a very useful and easy option for common investors and hence their participation in markets has increased intensely. SIP is similar to a recurring deposit where you deposit a fixed amount every month. Ease of transactions, tax benefits and good returns drove a wave of retail investors into mutual funds for last few years. A SIP allows investors to make regular, equal payments into a mutual fund for a period of time instead of one-time payment. The investments are spread over a longer term and allow investors to ride above the short term fluctuations in markets successfully.

  3. Evening Out Of Volatility Evening Out Of Volatility: Because SIPs are spread over a period of time, the short term market fluctuations do not affect their performance much. Remember that in a high growth emerging economy like India, short term market declines are normally considered to be a good buying opportunity for long term. An investor has to think about factors like his risk appetite and financial needs before deciding to put his money in a specific instrument. SIPs become very effective in this case if you are thinking about parking your funds for a long duration.

  4. Less Financial Stress: Less Financial Stress: A SIP allows investors to make regular, equal payments into a mutual fund for a period of time instead of one-time payment. SIP thus ensures that the finances of an individual investor do not get affected heavily and lessens the financial burden even as it ensures steady flow in savings over a period of time. SIP thus offers a systematic solution for long term wealth creation for common investors without any hassle. The SIP installment amount could be as small as Rs 500 per month.

  5. Thank You Visit: https://www.ajmeraxchange.co.in/blogs/what-makes-sip-an-attractive-investment-option

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