Systematic investment plan (SIP) which necessitates investing a constant amount regularly over time horizon for investment, generally every month. When the market goes up fewer units are purchased by the investor and when the market goes down then the same money invested gets translated into more units. Thus the investors acquire units at an average cost for the period. This will be lower than the cost accrued to lump sum investment.
Invest Regularly + Start Early = Wealth Creation
A systematic investment can create corpus of fund which is unimaginable. The reason is compounding with regular investment. More over systematic investment is not only for rich but even a person with Rs 100 per month can start. Even students can start. If parents start a child's S.I.P when he starts going to school, the returns generated by it can sponsor his whole higher education and further studies. Anyone can create a good corpus just by doing a simple S.I.P of Rs 1000/- , Rs 2000/- per month till the retirement.
S.I.P is like a channel you create to get rid of the hassles of investment planning and minimizing risk by diversifying, as you invest periodically. Moreover it is automatically auto-debited from the bank on the date specified by you. for your secure future
This proves that a disciplined and regular can give those returns which market timing can never give.
Wealth Calculator for systematic investment plan calculation.
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