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Parents Taught Us Slow and Steady Wins the Race, They Weren’t Wrong!
Thursday, June 28, 2018 IST
Parents Taught Us Slow and Steady Wins the Race, They Weren’t Wrong!

We all have that sweet childhood memory of saving every rupee in our little piggy bank either to buy that favourite video game or a dress or shoes. Also, while growing up, we always heard our parents talking about the importance of slow and steady savings. However, incorporating these life lessons, in reality, seems tougher now, as we are stuck in this rat-race of earning and spending.

 
 

What Do We Do About It?  
It may sound hard but saving or rather investing your hard-earned money is essential. Why? Maybe to fulfil your goals, keep inflation in check, to provide your family with a better lifestyle, or to lead a peaceful retirement life. 
However, investing a lump sum amount in one go may not be the ideal solution for many and hence a systematic way of investing money fits the puzzle here. 
 
Systematic investment can be one of the most effective ways to invest money so that one has something to fall back on later in life. Learning about it in detail will help you make better financial decisions. Read on as we try and break it down for you.
 
What is SIP?
Better known as Systematic Investment Plan, people across the world are getting attracted towards mutual funds in hopes of creating a secure financial future. There are several plans to choose from, but the basic idea is that a fixed amount will get deducted from your bank account on a set date and automatically be invested into a mutual fund chosen by you. 
 
The intervals for the same can be monthly, quarterly, and yearly according to your convenience. 
Another unique feature of this type of investment is that it is absolutely customizable. You can start with an amount as small as Rs 500.  
 
You hold charge of your money to the extent that you can regulate the amount and the duration, and also increase/decrease it as and when required. These tailor-made features have made SIP investments one of the best bets you can play with your hard-earned money.
 
Why SIP?
There are several amazing opportunities you may have let go off because you couldn’t take that leap of faith; or were too greedy and took the wrong chances and it resulted in failure. 
 
Even the most seasoned investors admit that these were the only two reasons why they met disappointment in the investment game. If you master the skill of controlling these two, you will have relatively lesser risks to deal with. 

 
 

How? By investing through the SIP mode.
 
SIP investment is a unique way of putting funds in a well-thought-out system, making it easy for you to keep track of what’s going on in the market. As it is difficult to track short-term market movements, this system secures your investment without you having to keep tabs on it all the time; thus, eliminating risks and increasing chances of gains. 
 
Moreover, investing small amounts every month in equities helps to build your wealth, just as this proverb goes- slow and steady wins the race!
 
Some Real-Time SIP Benefits
 
1. It Teaches You Discipline
SIP investment helps you regulate all your expenditure in a manner that allows you to have money in your account during the date of deduction. This puts you in a much better position to succeed with your investments.
 
2. Has A Long-Term Compounding Effect
When you keep on investing in a streamlined fashion over the years, you earn from your earnings as well, thus, increasing your returns. This compounding effect is one of the most astounding benefits of SIP investments.
 
3. Long-Term Benefits
With the motive of creating long-term wealth for you, SIP investment can help you dodge perils like inflation and help in maintaining a steady gain flow. Equities tend to outrun inflation in the long run, and this is what is going to be your ultimate pension plan.
 
 
4. The Rupee Cost Averaging Shield
Dealing with market risks is a tough task, especially when you’re clueless about what’s going on. SIP not only analyses these risks, but it also shields you from the ups and downs of the market by ‘Rupee Cost Averaging’. 
Basically, when the market goes up, you buy less, when it goes down, you buy more. In the long run, it helps in averaging your unit investment per interval.
 
Conclusion:
SIP is undoubtedly a great way of making wise monetary decisions that will last you a lifetime. So, what are you waiting for? Have a look at your sip investment options today!
 

 
 
 
 
 

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   Prashnavali

  Thought of the Day

बहुत खुश किस्मत होते है वे लोग जिन्हें "समय" और "समझ" एक साथ मिलती है, क्योंकी अक्सर "समय" पर "समझ" नही आती और जब "समझ" आती है तो "समय" हाथ से निकल जाता है!!!
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Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST


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