What is SIP and how it works ?

What is SIP and how it works ?
By: Best 2 Buys l #best2buys

   Do you know what the Systematic Investment Plan or SIP is. You will hear from many people talking about SIP. You must have seen enough posts related to SIP on your mobile or computer. But you do not know what SIP is, through our post, we will introduce you to all the information related to SIP ie. systematic investment plan. What is SIP and what is its work? Etc. The information will be given to you through this post.

     There are many ways to save, but with savings as well as increasing the amount of savings it has to be saved in a true sense. We can invest or reinvest the amount of savings in many places and make profits. But if we want to achieve a regular and balanced wealth, then we should invest the amount saved in SIP.

With SIP, not only are we increasing the amount of our savings, but through this we also get a discount in tax. In the initial times there was confusion about SIP in people and they considered it harmful, so today our post will try to break the illusion of those people and SIP means in Hindi and all the important information related to it will be shared with you.

We have heard many times that the small droplets make the ocean and it is also 100 percent accurate. The same applies in the case of investment. It is not necessary that we have to make big investments in order to earn huge amount. By doing so, there can be unnecessary burden on the person's financial situation, because in the process of making big investments, he will put his gardener in the situation. Therefore, if small investments are done regularly, then a large fund can be created in the long run, without any risk. SIP also works similarly.

SIP is a very easy way to invest with less loss. In which you can invest a fixed amount every month / intervals for a larger goal, then you can get a big amount in the long run with the amount of that small investment.

Through SIP, the investor has to invest a fixed amount in a stock market, mutual fund or gold etc. for a certain period, those people who are not aware of the stock market and are unaware of the way the market works. It is a very good way to invest through SIP. SIP sets the fixed amount at fixed time intervals. Investor can invest in the stock market, Mutual Fund and GOLD ETF through SIP.

SIP has brought mutual funds in the reach of middle class people because it also enables them to invest in those whose budget is very low. Once the group is unable to invest, but they invest 500 or 1000 rupees per month. Can have. So through SIP he has come to such people. Medium-term people can make big profits by making small investments for a long time.

In SIP, you invest a certain amount every month by investing in a company's funds and buying units, for example, by investing Rs 1000 ₹ of any company's fund, you get 100 units of that company in return. Will do And whenever you want to get out, you can get the profits by selling your purchased units at that time at the market price.

Benefits of SIP

There are several benefits of SIP, such as tax deduction, simplicity in investment, etc. Besides, there are other benefits too. Let us know what the benefits of SIP are: -

1) Small investment - As we know, there is a certain amount of time to invest regularly at fixed intervals, so it is very easy to get out of the amount for investment from your routine and expenses.

At a fixed interval you can earn a large amount by investing a small amount on a continuous basis.

If you invest 1000 per 10 percent interest rate every month, then in 15 years, you will get approximately 414,470 ₹ when your investment is over. While you have deposited only Rs 1,80,000 in these 15 years.

You can start investing in Rs 500 from SIP. Which can provide you good profits in the long run.

2) Ease of investing - It is very easy to invest in SIP. There is no need to worry about it more than once, once you have chosen your plan, the mutual fund withdraws the funds from your account and deposits it to your chosen plan. Your bank account is linked to your SIP scheme account. As you plan to invest 1000 है each month, your bank account is transferred every month to 1000 ₹ SIP account. Those sent rupees are used to buy the unit so that you get benefit in the future.

3) Decrease in risk - The biggest and main advantage of SIP is that the risk is very low. Suppose that you have to invest fifty thousand rupees in the stock market. You put that money in stock together.Now you do not know that the market will go up or down the next day. It will be a very risky deal. If this investment is divided in a little bit, then there is a decrease in risk. We can save this 50,000 rupees from the loss of the stock market by depositing it at intervals of 5000 ₹ 10 installments. Similarly, SIP protects us from the loss of the stock market by investing a small amount because of not putting a large amount together.

4) Tax exemption - When you invest in SIP, you do not have any type of tax to invest the amount or withdraw money. But tax deduction schemes have lock-in periods such as 3 years. You can get tax exemption by investing in these.

5) Systematic and disciplined investment - In order to invest in SIP, a small amount (according to your plan) from your account is invested regularly. This makes discipline and order in the process of making your investment. This discipline encourages you to save yourself and makes a habit of saving you.

6) Advantage of Compounding - The meaning of compounding is also found on interest. Whenever SIP is invested and whatever returns are given on the investment amount, the return is re-invested on the same back, so that the profit of the investor increases and the profits are due to it. Increases.

7) SIP withdrawal facility- There are no Lock in Period in the maximum SIP schemes. Lock in period is the time without which you can not withdraw your money from the scheme. But most schemes of SIP do not have a lock in period. Investors can decide to continue or stop investing in SIP as per their need. This gives the investor not only good returns, but also offers advanced liquidity according to its convenience.

In SIP, you can start investing only today at the rate of 500 ₹ each month. In this you need to choose not to be a Mutual Fund. Most things in it are automatic. The benefits obtained from SIP are very high and its loss is not equal. If you have a bit of money from your daily life then you should invest it with SIP. Even though the money is still small, after a few years have passed and after investing regularly, that small money will collect you a huge fund. Which you can use as you like.

I hope you guys have understood about SIP in Hindi. I am convinced of all the readers that you too share this information with your neighbors, relatives, friends, so that we will be aware of our interactions and this will greatly benefit everyone. I need you people's support so that I can bring you even more new information.

But even if you see something in our post, please give your opinion in the comments box and help us improve that deficiency, thanks.