THERE ARE thousands of excuses to justify not making investments. But, there is just a simple way to overcome all these—Systematic Investment Plan or SIP.
Many people often believe that they need a large sum of money to start investing. In fact, you do not. With SIP, everybody has the freedom to get rich if one is patient, disciplined and focussed.
SIP by sip
The best way to build wealth is by keeping aside a small amount every month before you start to spend. If you are in the early stages of your career, it does not even matter how much that amount is. One can start with even Rs1,000 a month.
There are 2.98 crore SIP accounts that bring Rs8,500 crore a month. Put together, SIP investors have so far created SIP wealth of Rs3.17 lakh crore. SIPs are today the preferred way for both small and big investors thanks to the convenience: monthly saving, rupee-cost averaging, optimal risk-reward balance, and superior wealth creation potential.
Automate for life
The SIP way of investing allows you to automate saving and investing for life. You just have to decide how much you want to save/ invest every month, where you want to invest and for how long. At your chosen interval, the SIP money gets automatically transferred from your bank account and invested in the mutual fund of your choice. You are kept informed all along.
SIP is just a common sense way to invest. But it is a habit that leaves a positive impact from the day you start. SIP helps you automatically prepare for life’s commitments such as house purchase, marriage and children’s education in a planned manner.
SIPs are easy to maintain. Over an extended period, SIPs can deliver great returns. Plus, there are ways to obtain a steadier performance and build wealth at the same time using the SIP route. As your income rises, you can boost your monthly SIP or do a top-up SIP to plan for bigger goals or reach a goal faster. It is always up to you.
Freedom in your reach
SIP money keeps getting invested every month in the mutual fund of your choice and for as many years as you would like. Before you know it, the habit of investing will become a part of your life. You do not need to worry about markets. You do not need to be an expert. You just do your job and get your salary so that you can invest regularly. Everything else is managed by SIP.
Things are easier with ICICI Prudential Freedom SIP, a unique plan which offers a monthly SIP investment that can give you a life-long return. Start a monthly investment of any amount. Select your tenure and start investing. After completion, you can get life-long monthly returns with Systematic Withdrawal Plan (SWP). An eight-year tenure can get you 1X of monthly SIP investment. A 10-year tenure can get you 1.5X of monthly SIP investment. A 12-year tenure can get you 2X of monthly SIP investment and a 15-year tenure can get you a 3X of monthly SIP investment. Plus, get 100 times life insurance cover on your monthly SIP investment just in case something unfortunate happens.
Author is founder of Omniwealth LLP.