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Waht is SIP And Power of Compound Interest

What is SIP And Power of Compound Interest, Illustration of SIP benefits.
Waht is SIP And Power of Compound Interest

Do you want to fulfil your dreams, are you worrying about how to arrange money for all dreams, then here is a solutions of your fund problem. 
Systematic investment Plan(SIP) helps us in achieving our various life goals systematically. SIP is a technique of investing in mutual funds through small, periodic installments. An investor can invest small sums of money monthly, as a contribution towards his goals, and have the required corpus created at the time of accomplishment of goals. 
  • SIP is a simple, smart and time tested method to achieve financial goals. 
  • SIP is a disciplined approach of investing in money market. 
  • SIP uses the power of Averaging and power of compounding.
Risk free investment uses a formula to invest total funds in installments which reduces the risk easily. SIP is a convinient mode of investing in money market.

Investors get the advantage of 2 important concept in SIP:

1. Power of compounding- Give maximum time to your investment and you will get higher return because of power of compounding. 
For example -
If we invest 10,000 today then after 10 year suppose it will become 15000, now interest will be generate in 15000, which will again increase gradually and so give maximum time to your investment and you will get maximum return. 
2. Rupee Cost of Averaging:
With SIP the investors gets more units when the price falls and less when price rises. At the end of the day the cost per unit is averaged out.

Let's Understand The Benefits of SIP With a Practical Example:

sip example, illustration of systematic investment plan
SIP For wealth creation

The above example is merely an illustration to explain the benefit of investing at an early age. No guarantee or assurance of return is being offered by any Mutual Fund or advisor.

Investments in MF are subject to market risks.

Read More Related Articles On Money Market:
Indian Mutual funds basics
What is mutual fund?
What is ELSS fund?
Why One Should Invest in Diversified Equity fund?

What is SIP And Power of Compound Interest, Illustration of SIP benefits.

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