Systematic Investment Plan – Your real insurance for any economic crisis
Doesn’t matter if you are an experienced or a rookie in the investment genre, it is never possible to be able to time the market! As audacious it may sound, we are here to prove this point! If you are someone who loves to invest safely and hates playing with risks, you already are aware of the terms mutual funds and systematic investment plans (SIPs).
This blog is to help you understand the importance of systematic investment plans no matter what your saving capacity is. However, before that, let’s decode what it is exactly. Let us put it plainly – SIP is basically a safer mutual fund investment that holds the nature to increase or decrease the units based on the market volatility.
The stock market can never be predicted and the only way to hack closer to it is to study. People like you and me may not have enough time to review the market insights. This is when financial consultants come into the role of assistance. Before that, you need to understand if you are willing to take the risk or invest somewhere safely with guaranteed returns. Systematic investment plans are said to be the safest in terms of guaranteed returns. Here are all the reasons why you can rely on your SIP savings:
Study market insights? Not really
How? SIPs work in a simple manner. You just have to invest a small yet considerate amount of money that deducts from your assigned bank account. You don’t have to worry about where the money needs to be invested and for that matter, you don’t have to study the market movements on a daily basis.
Market falls, SIPs don’t!
As discussed previously, SIP is all about a fixed amount being deducted from your assigned bank account on a specific date. This means you can regulate the exact amount you are willing to spend for a particular tenure is. Now, there is one more perk to this – even during tough market situations, your SIPs do not stop. It only helps you meet your long-term financial goals set previously.
Choose & invest your way
Let’s say you have a financial budget of only 500 INR every month to invest. SIPs are the best when it comes to choosing your investment amounts. You can start from as little as 500 and go up to 50,000 and more! You can also pick your tenure from weekly, monthly, quarterly, and even annual installments based on your preference.
Stop your SIP anytime!
Yes, there is no restriction if wish to stop your systematic investment plan. You don’t have to pay fines or extra charges but simply opt out as and when required. Moreover, you can also choose from acquiring back the amount or keeping it invested in the mutual funds.
Skipped payment? Not an issue
You heard us. If due to certain circumstances, you are unable to pay a month’s amount from your bank account, you can continue the SIP unless it is a recurring deposit. In case of a recurring deposit, you may be levied some fine.
At Soul Inc, we help our clients to grow substantially by offering them the right advice in the right direction. SIPs are one way we help our clients understanding that these can be your savior during any major economic crisis. Thus, stay smart and invest wisely!