Today’s world has offered us with lot of attractive things, which leave us empty handed at the middle of the month itself. We have lot of needs to take care of, lot many things to buy, different loans and EMIs to repay and many dreams to plan as well. But it is very difficult to plan and realize those needs and plans successfully, because we may not be able to procure funds for these things in time. Even if you start saving money to serve these things right from the day one you dreamt of, the inflation and sky rocketing price hikes will ultimately let you down.
Therefore, we need to plan our savings and investments in a more structured and profitable way. Obviously, there are different investment tools available in the market which gives you good returns and flexibility as well. But, these investment tools may not develop the habit of regular investment in us. One of my ex-colleague was telling me that have a habit of buying one gram gold every month. Of course that is a very nice idea but it won’t help us to serve our short term needs as keeping gold is little risky and returns are very less in the short term.
Now, I would like to introduce you all a well-known investment tool called SIP (Systematic Investment Plan) with its unique features.
The Systematic Investment Plan allows investors to save a fixed amount of rupees every month or quarter for the purchase of additional units in a mutual fund. SIP helps us to plan our retirement, childrens education, wealth creation and finacial planning as well.
Income – Savings = Expenditure, instead of following the principle of –
Income - Expenditure = Savings.
Investing through SIP can offer the following benefits:
I hope all my readers will start investing through SIPs regularly as it is considered as one of the most important and popular investment tool across the world. Warren Buffet tells that he purchased his first share when he was 14, but still he feels that he was late, therefore don’t wait anymore, and get started with one or more SIPs, so that you will only start finding it very easy to realize all your dreams and plans in time.
Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.