Reasons to Start your SIP now!
Save As You Earn The first salary is a great milestone in each person's life. The experience of being independent brings a lot of thrill and joy. At this stage, it's essential to start saving to accomplish your financial goals. Buying a dream home, international travel, marriage, child's education, retirement, etc. require a substantial amount of regular savings. Systematic Investment Plan (SIP) is one of the best routes to plan your savings and investments that sync with your income flow. Start a SIP as soon as you start earning to meet your long term financial goals. Sooner The Better It's essential to grow your savings over a while. SIPs provide an advantage of disciplined investments along with the power of compounding. Compounding gives a multiplier effect to your savings which might result in greater returns in the long term. So to leverage that, sooner you start an SIP; the more beneficial it will be. A younger investor can take more risk, which may generate greater returns. Investing in equity-oriented mutual fund SIPs with a long term investment horizon may help him achieve greater capital appreciation in the future due to the power of compounding. He can swiftly achieve his financial goals at different stages of life. On the other hand, an older investor becomes risk-averse. At this stage, his primary goal is capital preservation or retirement income. He may opt for dividend payouts, reducing the power compounding.