Best Mutual Funds for SIP

Most of us today have a steady flow of earning and spending on a regular basis. Statistics have shown how most of the things we ‘need’ now include what would previously be labelled under ‘indulgence’ or ‘want’. The month begins, most working professionals get paid, and it seems like there is an entire month to go. However, it happens so fast that before you know it, the month has gone by, and so has that money, and many are left thinking “I should have saved earlier!”

This is where the best mutual funds SIP plan comes in play. Promoting the ‘save first-spend later’ attitude, SIP mutual funds work in an automatic way once signed up for. A stepping stone in the world of investment, SIPs are relatively low risk when done with an experienced, knowledgeable, and fully aware financial planner.

Some of the most obvious advantages of investing in SIP mutual fund plan include:

• Accountability – Saving becomes easy with the best SIP plan since the account holder is expected to pay a fixed amount every month. In most cases, these amounts get automatically debited at regular intervals, normally towards the beginning of the month – strengthening your commitment and helping you with planning the rest of the month.
• Affordability – The amount you want to invest on a monthly basis can be as little at Rs.500, to as high as you can go, making it a viable option to almost anyone!
• Less or Medium Risk – As part of SIP mutual fund plan, financial planners divide your funds to invest in different places safeguarding your resources. In simpler words, they place their eggs in different baskets – so you never suffer a huge loss!
• Adjustable policy – In case of emergencies, you do have several flexible options to work out the schedule and the end date of investing. However, it is important to note that the longer you invest in an best SIP plan, the greater the results you will see.
• Accumulation of Compound Interest – Normally simple interest is calculated on the principal amount, however, in the case of SIP, a compound interest is calculated. This means that the first time you invest in an SIP, the interest gained on it is added to the principal amount. The next time the interest is calculated on this sum, not the original principal amount. Thereby, you earn a greater interest, the longer you invest in it.
• Rupee Cost Averaging – The most influential reason to invest in an best mutual fund SIP plan is that investing decisions are made at monthly intervals, or timeframes set by your financial planner and yourself. This means that he or she can take strategic decisions on basis of the market scenario at that given point of time instead of taking decisions at one time that may or may not be beneficial after a while due to changing scenarios.