Have you ever thought about how you are saving or investing your money? I do not think so! We all follow a monotonous schedule. We earn, spend and save a part of our earnings. As far as saving is concerned, we never reviewed all the alternatives that could be taken into consideration before investing. The entire mutual fund industry had worked in word of mouth advertising until a few years ago. But, now the image is changing. With the beginning of technology in almost all fields, customers become alert like never before. So, why leave the monthly investment Plan industry intact? An impressive renovation called Systematic Investment Plan (SIP) has generated a new life in the sector. It admits three different words, namely, Systematic, Investment and Plan. Systematic, which means a consistent process. All that is supported for a long period through a gradual but fixed pattern. Investment is a strategy of making money with money. In short, it is a process of nurturing wealth. A plan is usually an idea or method to accomplish anything through the proper channel. The universal design of a SIP includes the deduction of a particular amount from the beneficiary's account with the frequency established by the investor, according to the type of SIP chosen. This business continues for a number of years and then the amount invested is returned to the client with interest as a corpus. Types of Systematic Investment Plan: There are several systematic investment plans available to suit the desire of a divergent customer base. They are the following: Monthly Plan of Systematic Investment: it is the most popular type chosen by the clients. As the name implies, the monthly plan allows you to invest your money monthly. Every month, the amount is deducted from your account. The amount can be any sum of money according to your budget and your investment strategy. The monthly scheme inseminates the habit of regular and planned investment in investors. This form of SIP is not complicated. Mass investors are attracted to this scheme due to its flexibility and progressiveness. Daily systematic investment plan: Have you ever heard of the phrase "Dig the well every day and quench your thirst"? This phrase fits here correctly. The investors who opt for the daily plan are those who plan their income-expenses cycle on a daily basis. These customers believe in filling the pot drop by drop. A very constant and slow form of investment, Daily SIP is quite safe at the same time. Flexi's Systematic Investment Plan: businessmen and professionals who frequently change jobs need a plan where they can invest whenever they want. A scheme that gives them the desired freedom is called Flexi SIP. Flexi SIP is an investment plan in which the investor can put an inconsistent amount in different time intervals. There is no restriction on the money or when the SIP fee is paid. Therefore, if the client has an excess of money in a month, he can put it in the SIP. All types of systematic investment plans are exceptionally progressive. It only depends on the client and his investment beliefs, which define his investment strategy.
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