4 Benefits Of SIPs

  Author: Kundan Kishore

Systematic investment plans (SIPs) offered by mutual funds provide small investors unique benefits. These benefits make them ideal for investors, especially those who start investing. Here are four of them:

Automated investments On the dates chosen by you, say, first of every month, money is automatically debited from your savings bank account and invested into your mutual fund scheme. This means that your regular investments remain on course and you really don’t have to make special efforts for them.

Flexibility You can choose your SIP investment amount, date and frequency, be it daily, weekly, monthly or quarterly. This SIP feature helps you tailor your periodicity of investments according to your specific requirements.

Small investments SIPs are ideal for those starting out investing in mutual funds and want to begin by investing small amounts. You can start with an investment of as small as Rs 500. There is no limit on the maximum investment amount.

Investment discipline SIPs help investors, especially younger ones, establish a regimen for regular investments. These regular investments help people save large amounts of time over long periods.

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