There are many ways of saving, along with increasing the amount of that savings, is to save truly. We can invest or invest the amount of savings in many places and make profits. Balanced If we want to get regular and balanced money, then we should invest the saved amount through SIP.
By doing SIP, not only are we increasing the amount of our savings but through this, we also get tax exemption. Initially, people had confusion about SIP and they considered it harmful, so today our post will try to break that confusion of those people and all the important information related to SIP means in Hindi and it will be shared with you.
What is sip
We have heard many times that the ocean is made up of small droplets and this is also a hundred percent true. The same applies to investment. It is not necessary at all that we always have to make big investments to earn large sums of money.
Doing this may put an unnecessary burden on the financial condition of the person because, in the course of making big investments, he did not keep his financial condition in check. Therefore, if small investments are made regularly, then in the long term, large funds can be prepared without any risk.
SIP is a very easy way to invest with low losses. In which you can save for a big goal by investing a fixed amount every month/interval, then after that small amount of investment you can get a big amount in a long time.
Through SIP, the investor has to invest a certain amount in the stock market, Mutual Fund or gold, etc. for a fixed period, those people who are not much aware of the stock market and are ignorant of how the market works. For this, investing through SIP is a much better solution. The SIP invests the specified amount at fixed time intervals. An 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 man as it makes even those who have a very low budget to invest. Those who are unable to invest big at one time but investing 500 or 1000 ₹ every month. Can. So through SIP, he has come in the reach of such people. Middle-class people can earn big profits by making small investments for a long time.
In SIP, you invest a certain amount every month and buy Units by investing in the fund of a company, for example, the NAV of a company’s fund is 10 ₹ and by investing 1000 ₹ you get 100 units of that company in return. Will take And whenever you want to get out, you can get the profit by selling those units you bought at the current market price.
There are many advantages of SIP such as tax exemption, ease of investment, etc. Apart from that, there are some other advantages too. Let us know what is the benefit of SIP: –
1) Small investment – As we know that it is necessary to invest a certain amount regularly at fixed intervals, so it is very easy to withdraw funds for investing from your routine and expenses.
You can get a large amount by investing small amount continuously for a long time at fixed intervals.
If you invest 1000 ₹ every month at the rate of 10 percent interest return, then in 15 years you will get about 414,470 ₹ on completion of your investment period. Whereas in these 15 years you must have accumulated only Rs. 1,80,000.
You can start investing in SIP with 500 rupees. Which can provide you good profits in the long run?
2) Easy to invest – It is very easy to invest in SIP. For this, there is no need to worry, just after choosing your plan, on the fixed date, the mutual fund withdraws funds from your account and deposits it in your chosen plan.
Your bank account is linked to your SIP scheme account. Just like your plan is to invest 1000 ₹ every month, then you are transferred from your bank account to 1000 SIP account every month. That sent money is used to buy units, which will benefit you in the future.
3) Risk reduction – The biggest and main advantage of SIP is that the risk in it is quite low. Suppose you have fifty thousand rupees to invest in the stock market. You put those rupees together in stock. Now you do not know whether the market will go up or down the next day.
It would be quite a risky deal. If this investment is distributed in a short interval, then the risk decreases. We can save ourselves from the loss of the stock market by depositing this 50,000 rupees in an interval of 10 installments of 5000 ₹. Similarly, SIP protects us from the losses of the stock market by investing a small amount due to not putting a big amount together.
4) Tax exemption – When you invest in SIP, you do not incur any kind of tax on investing or withdrawing money. But tax-exempt schemes have a lock-in period such as 3 years. You can get tax exemption by investing in them.
5) Systematic and disciplined investment – In order to invest in SIP, a small amount (according to your plan) is invested regularly by withdrawing from your account. This keeps discipline and order in your investment process. This discipline encourages you to save and leads to your habit of saving.
6) Benefits of Compounding – The word Compounding means getting interested in interest also. Whenever an investment is made in SIP and whatever return is received on the amount invested, it is re-invested back on the same place, which increases the profit of the investor and in the profit of the same. Increase comes.
7) Facility to withdraw money from SIP – Most SIP schemes do not have any lock-in period. Lock-in period is the time without which you cannot withdraw your money from the scheme. But most SIP schemes do not have a lock-in period.
Investors can decide to continue or stop investing in SIP according to their needs. With this, the investor not only gets good returns but also gets advanced liquidity as per his convenience.
Today you can start investing in SIP at the rate of just 500 ₹ every month. In this, you do not need to choose Mutual Fund. Most of the things in this are automatic. The benefits from SIP are very high and its losses are negligible.
If you have saved a little money from your daily life, then you should invest it through SIP. Even if that money is still small, after passing a few years and investing regularly, that small money will make you collect a big fund.