Why should investors open an SIP Account?
- No need to track the market New investors are generally unsure of the market. In case of lumpsum investments one loses a large amount if the market crashes. Conversely, one stands to gain if the market rises. With an SIP, the amount is staggered over a period of time, and only a certain portion e https://urzadzajzpasja.pl/ https://dlabiznesmena.pl/ https://przewodnikmodowy.pl/ https://remontibudowa.com/ https://zaskakujacakuchnia.pl/ https://polskiewyprawy.pl/ of the investment will face market instability. However, one should note that investing in SIP are subject to market risk and do not assure a profit or returns or protection against a loss in a downturn market.
- Adjust SIP amounts
SIPs are flexible. For instance, if you start a Rs. 500 SIP in a mutual fund scheme it is not necessary to invest the same amount every month. If one’s savings increase in the future, you can increase the SIP amount or even start a new SIP in the same mutual fund scheme or any other scheme. You can miss paying the SIP for a few months or even stop the investment as per your choice.
- Rupee cost averaging
When the market falls, the investor can buy more units. Similarly, investor will buy fewer units when the stock markets rise. This reduces the per-unit cost of purchasing the units. This is called rupee cost averaging.
- Habit of investing
If an investor decides to invest through an SIP, this entails putting aside a fixed amount periodically. This inculcates financial discipline.
- Suitable for new investors
An investor, who has just started her /his career, can use an SIP account to enter the world of investing. This way, she/he understands equities with a nominal amount. Later, one can invest in ris
