When it comes to planning a secure future for yourself and your family, you not only have to think wisely, but also be smart. Taking advantage of the right investment opportunity at the right time is difficult, but with SIPs, investors who are just starting to get the ball rolling can get good returns with minimal strain on monthly expenditure. Like Aarav and Suman Dubey, a couple residing in Mumbai, you too can invest wisely and smartly in SIPs and watch your hard-earned money earn exciting returns.
Aarav (32) and Suman (28) Dubey, married for two years, have decided to go the family way. Expecting good news soon, the couple are keeping their fingers crossed. However, a lurking anxiety is troubling their minds. New responsibilities and a lifetime of commitments would lead to added expenses. So, it is imperative that they make careful and wise financial investments for a secure future. Aarav and Suman did exactly that. They chose to invest in a systematic investment plan, i.e., a SIP investment in mutual funds.
What are SIP investments?
Aarav found that investors like them had the convenient option to invest in mutual funds through small amounts periodically, be it weekly, monthly or quarterly, based on their convenience. Rather than a heavy one-time investment, Aarav believed that an auto debit every month from his account made more financial sense. Since their investment depended on their risk appetite, which was moderate, he thought that a SIP investment would help them achieve their future financial goals with relative ease.
When Suman expressed doubts about this investment option, Aarav explained that mutual funds are investment programmes funded by shareholders with similar interests and objectives as investors. The funds are strictly regulated and registered with SEBI, and would help them strike a balance between capital growth and tax savings.
Aarav found that Bajaj Finserv offered the best mutual funds interest rates and that these funds were professionally managed by adept market specialists, ensuring better returns and lower risk. As investors, Aarav and Suman would be able to diversify their portfolio with SIPs. One of the most important reasons why they also chose to invest in mutual funds was transparency. Aarav and Suman would be able to keep a track of their investment with easy online access where valuable information on the current value of their investment would be visible. Easy access to the detailed portfolio disclosure of their investments would also help the couple understand the investment and reap the benefits.
Advantages of SIP
Years into their SIP investment, Aarav and Suman were basking in its advantages. Not only were they reaping benefits, but also recommending SIP investment in mutual funds to friends and family. Here’s what Aarav and Suman had to say:
- SIP is a smart investment option, which gave them a disciplined approach to investment with the flexibility to invest small amounts periodically.
- SIP is an investment across market phases over a long term. Hence, there is a minimal risk of market timing, which is otherwise a major concern for novice investors.
- There is ample scope for investment, irrespective of whether the market is up or down. SIPs help in steadying the mutual fund investment where more securities can be bought in market lows and vice versa. This helped the couple average out the cost of investment, over long term with superior returns and fewer shocks.
- Aarav and Suman felt no opportunity loss arising from lack of funds. Instead, the money kept flowing into the market periodically.
- The rupee cost averaging in SIPs helped lower the average per unit cost. This helped reducing the unpredictability and risks.
- Finally, the couple also experience the power of power of compounding, where their small periodic investments created a big corpus over time.
Like Aarav and Suman, you too can experience the benfits of SIP investments with Bajaj Finserv mutual funds. To know more,