When you choose to invest through SIPs in mutual funds, you decide a fixed amount to be invested at a frequency that suits you. Generally, investors opt for a monthly SIP but it can also be weekly, fortnightly, quarterly or semi-annually.
You can also choose to do an SIP Top Up whereby you can increase the monthly investment periodically.
SIP Top-up is a facility wherein you have an option to increase the amount of the SIP Installment by a fixed amount at pre-defined intervals.
Let us discuss in detail about how SIPs in mutual fund can boost your portfolio in the long run:-
- Disciplined investment
SIPs ensure commitment and discipline of investment because through an SIP, a fixed amount is deducted from your bank account at regular intervals which further gets invested in the specified Mutual Fund Scheme. In this manner, an automatic sense of discipline is instilled amongst investors. You also do not end up spending money in other unnecessary things and rather build up wealth for your financial goals.
- Benefit of Rupee Cost Averaging
Through SIPs, you can avail the benefit of Rupee Cost Averaging. Rupee cost averaging is an approach in which you invest a fixed amount of money at regular intervals, however the units bought with every invested lot may differ based on its NAV.
- Helps in achieving long-term goals
SIPs are one of the most preferred modes of investments to help in achieving long-term goals. This happens because the returns which are generated over a period of time get accumulated until maturity and provide you with adequate finance to attain your long-term goals. Additionally topping up your SIPs or increasing your contribution helps you to stay in line with inflation and get maximum possible returns.
- Low Initial Investment
Investment in mutual funds can begin with as low as Rs. 500 per month. Thus, SIPs can be an affordable way to invest each month without sparing much money. With the SIP step-up feature, you can increase the amount of your investment. This strategy can also help you in reaching your investment goals faster.
- Benefit of Compounding
With SIP investments, you can also reap the benefits of compounding. Compounding is an absolute game-changer. The longer you stay invested, the more you earn and your money multiplies. Hence, one of the biggest advantages of SIPs is that your money creates more money for you.
Apart from the aforesaid benefits of SIPs, you can also withdraw your SIPs easily with a few quick online steps. Also, investing for a longer period of time reduces the probability of negative returns as volatility in returns is reduced.
With mastertrust, you can invest in a wide range of mutual funds like large and multicap funds, small and midcap funds, balanced funds, debt funds, ELSS funds and liquid funds among others. Moreover, you can buy, sell, switch and redeem at anytime and can also conveniently do SIPs, SWPs and STPs with mastertrust.
Invest anytime at your convenience and know everything about your mutual fund portfolio with mastertrust. Say bye to paperwork and start your investment journey through a secure and electronic platform.