Top 5 Reasons to Consider Investing Through Sips

SIP

Consistent investing helps develop financial discipline. It enables you to build your wealth strategically. It also empowers you to generate inflation-beating returns. Sustaining this habit is essential if you wish to enjoy a financially secure future. It plays a crucial role in achieving your monetary goals on time.

But many shy away from kickstarting their investment journey. Market uncertainties and the complexities involved intimidate them. For such individuals, a Systematic Investment Plan serves as a viable option. It is a well-ordered investment scheme that follows a simplistic structure. It allows you to deposit small sums regularly for a fixed period. 

The same can be calculated easily through a SIP calculator. Following are the reasons why you should consider investing through SIPs: 

Tax-free 

The most significant advantage of a SIP lies in its tax-free feature. According to Section 80C of the Income Tax Act, such schemes are exempted from taxes. This allows your investments to grow and reach their maximum potential. It saves you from unnecessary deductions. 

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Offers minimal deposit amount

Most investment vehicles expect you to invest considerable money. But doing so is not feasible for everyone. SIP works in favour of investors who do not have excess funds. It lets them start their investment journey by depositing as little as Rs. 100 to Rs. 500. 

Easy to follow through

This investment follows a relatively simple scheme. It involves no complex steps or formalities. You can even access financial tools like the SIP calculator, which helps compute your investments’ returns. Such availability leaves no room for confusion or errors whatsoever. 

No need for extensive market knowledge

Ideally, you need to have sufficient market knowledge to start investing. But this does not stand true in the case of SIPs. You need not time the market or panic about market fluctuations. Through Rupee Cost Averaging, you know when your investments will fare well. You even know the potentiality of your investment relatively early. 

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Instils financial discipline

SIPs are an excellent avenue to start your investment journey. It assists in developing financial discipline by demanding consistent deposits. Although gradually, it lets you reap good returns. This urges you to stay focused and punctual with your investments. It motivates you to maintain financial hygiene and hold accountability. 

Conclusion

The significance of regular investing becomes evident in many situations. A financial emergency is a prime example of this. Having a reliable source of funds is essential to dodge such unfortunate events. Hence, starting with a SIP and using the SIP calculator is advisable. Not only does it provide liquidity, but it also enables you to build your wealth effectively. 

ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. – ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, India, Tel No : 022 – 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.ss

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