sip

What is SIP and How to invest in SIP

What is SIP ? An easy way of investing in a low risk method. in which you can earn a substantial amount every month by adding a fixed amount to save for a larger purpose.

Consider Reading : How to make 1 Crore investing in SIP .

What is SIP and what are the benefits of investing in it.

Here i am going to tell you in easy language. Whether you are a job profession or a householder. you can invest in a large amount by investing in the SIP and saving a little bit of money every month to fulfill your dreams.

For those who do not have much information about the stock market / share market, investing through SIP is a better way to reduce the risk of the investor.

SIP is a method of investment and savings under which any investor keeps investing in a fixed amount. in a fixed amount of their fixed stock shares or mutual fund. Gold is also invested in commodities like gold, which is SIP. Investing with SIP makes it easy to invest in disciplined ways and reduces risk of investment.

Read how you can make one crore rupees by investing in SIP.

What is SIP ?

SIP i.e. systematic investment plan But I would like to call it a Sort of Investment Plan. In an interval of equal time in SIP an equal amount is invested in one item.

Suppose an investor has fifty thousand rupees in order to invest, then he does not invest them on the same day, he can invest in SIP for five months at a rate of ten thousand rupees per month.

Any investor can invest in the stock market, Share Market, Mutual Fund or Gold ETF through SIP.

Investment intervals can be kept per day, per week or per month. This is an easy way of investing for salaried professionals.

Large investments can be made in regular and disciplined manner by saving some salaries every month. SIP can be started by giving advance check in any mutual fund or giving online instructions. SIP can also be made from a small amount of Rs 500 per month.

SIP investment and it’s Benefits ?

SIP is a great way to invest. Here we are explaining the advantages of SIP investment.

Small investment is easy to draw for a small amount of investment. For a long time the investment of small amount can give you big returns.

The biggest advantage of SIP is the reduction in risk.

Suppose an investor has to invest fifty thousand rupees in the stock market. He put them together in the market. The next day the market will go up or down, no one knows . If this investment is done in small intervals, then there is a decrease in risk.

Investment can be easily invested by investing in SIP online. On a fixed date, you can invest in any mutual fund SIP. in which you can decide your own mutual fund company and can invest as low as 500 Rs. by which it is not make any heavy load on saving account and onto your ongoing expenses.

Let me tell you an Story about What is SIP and why it is important .

Ramesh and Rajesh are two friends. Both promised their wives that they will gift gold necklace on the next anniversary of their marriage. Ramesh kept waiting for the whole year when it will be cheap when it is cheap. Often the gold was cheap but Ramesh used to think that gold would be more cheap now. Ramesh was unable to judge, and had to lose the price ( lowest gold price ) at which the year had passed.

Rajesh started SIP investments in Gold ETF since the first month. When the cost of gold was reduced. or Rajesh was invested in increased prices. You can guess who has paid more than the price of the loss.

In the end you have heard the story of thirsty crows. The water in which the water was low and he put small stones and filled the pot and drank water. SIP is an easy way to invest a small amount in regular stock market share market with Mutual Fund.

Hopefully after reading this post about “ SIP “you should understood what SIP is and how it works.