Introduction to SIP
Sipping the coffee were ever you are brings in fresh energy
and nobody can disagree, in a similar way make a SIP account to bring a new
zeal to your savings & investment in your life. There is always a saying ‘A
stitch in time saves nine’; similarly SIP in time can help you to save you from
losing lots of money. Most of the time you would have heard about mutual fund,
saving for a longer time, opening a PPF, for retirement etc, have you heard
about delay cost which might affect your corpus in long time. We have numerous
examples of starting early so that you can have a safe retirement and
definitely it is not about getting extra pressure to save more it is just
planning for your retirement. If you have doubt like "Should i start SIP ? " , Start a SIP soon so that you can avoid delay
cost.
Delay Cost:
Delay cost can be clearly understood from the increase in
inflation. Our daily so called health drinks had increased by a huge margin
from the price it was sold years ago, the cost of living had increased
incomparably in the last 20 years. So the need to save more for our old age or
retirement age will also increase more, wont you agree?
What is the rate of increase of Tur Dal in the last 2
months?
What is the rate of increase of home rent in the last 5
years?
What is the rate of increase of your fixed deposit rates in
the bank account?
And finally,
What is the increase of savings in the last 3 or 4 years?
Why SIP?
May be because of the below reason you can choose SIP route,
1) You aren’t savvy enough, SIP can bring in habit of saving at the minimum of 500
2) If you aren’t sure enough of goals, SIP can make you start separate funds which you can utilize
3) If you don’t know anything about stock market, you can invest in mutual funds based on certain parameters
4) If you are not sure about lump sum investment, definitely you need to go with SIP
1) You aren’t savvy enough, SIP can bring in habit of saving at the minimum of 500
2) If you aren’t sure enough of goals, SIP can make you start separate funds which you can utilize
3) If you don’t know anything about stock market, you can invest in mutual funds based on certain parameters
4) If you are not sure about lump sum investment, definitely you need to go with SIP
HDFC Equity fund was started in 1995 and if any one who had
just invested 1000 since inception would have ended paying just around 2lakhs
and it is worth 47 lakhs. It brings in the Compounded Annual growth rate of
21%, can you imagine any other asset bringing in this much growth for this much
longer period and with liquidity. Suppose if you were investing 2000 instead of
1000, you would ended up with 1 crore.
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