There several investment products to select from in the market. Equity Linked Savings Scheme, lovely called ELSS is one of the most popular tax saving mutual funds to select from to make the investment. These funds come with a short lock-in period of just 3 years and this is one of the important factors that attract most of the investors towards it. This is one of the best investment product that helps you make wealth at the same time of working as a tax saving machine. But there is one thing that makes most of the investors to stand before the question; whether to make one-time investment or SIP (systematic investment plan).
SIP looks better
SIP look better than one-time investment plans for several benefits. There is no more need to get confused with the question is investing in sip a good idea. In all terms, SIP bring you several benefits and make the investment plan a part of your life. Here are some of the important benefits of investing in a systematic investment plan.
Habit of saving
This is one of the important benefits of SIP. Since it requires you to pay the amount during frequent intervals, it creates a habit of saving in you. It brings the feel of commitment and responsibility since you have to save a fixed amount every month for the investment. You can select the mutual fund that perfect meet and match with your budget and preferences. There are plans that demand you to save only Rs. 500 or Rs. 1000 for your investment purpose to make you free from the burden on your shoulders.
Spreading the risk
There is no doubt that mutual funds are subjected to market risks. With a one-time investment, you put a lump sum amount of money without thinking about the market conditions. But in SIP, you can lower the risk since the investments are made throughout the year. Good numbers of investors prefer SIP since to help them to keep a good amount of money with them and make the investment in installments in accordance with the market condition and growth.
Better suit for every one
SIP suits the people of all types with investment dreams. There is no need to have a bag full of money to make an investment. You can make a superb start to a systematic investment scheme with your pocket money. There are several companies to help people with a low-cost investment plan that comes with different premiums and rate of returns. There are online portals to help you select the SIP mutual fund as per your taste and preference.
Countless searches are made online for is investing in sip a good idea. If you can save some small amount today for better tomorrow, then there is no doubt that SIP mutual funds are the best products to select from. Visit the best direct mutual fund app to find the best plans for you. There is no need to make any of the paper works since everything is made electronically.