What are the benefits of SIP?

SIP Mutual Funds| image source : freepik.com 

SIP or ‘systematic investment planning’ is a disciplined way of investment and today, you can start your investment or SIP with INR 500 per month only. You set aside a fixed amount every month out of your income or salary and invest in a SIP at regular intervals. There are a lot of factors which should be considered while selecting an SIP like past performance, growth index, beta of a portfolio, and other factors affecting the portfolio directly and inversely. It also reduces the risk by diversifying your portfolio meaning if your risk appetite is high than you can choose a more equity concentrated SIP otherwise if you have a moderate or low risk appetite than you should go for a SIP which has debt and equity both. In this case, you can choose Kotak Mutual Fund as SIP investment plans which ranges from high to moderate risk and also from long term to short term perspective.  

Benefits of SIP mutual funds: 

• Easy to Invest- SIP mutual fund can be easily set up online from the comfort of your home. All you need is to choose the right mutual fund, the amount you want to invest, select the installment date, provide your bank and security details, and you will get the details of your investment or schemes on your online dashboard. Kotak Mutual Fund has made it easier for customers to invest, and you can easily start your SIP account by entering your phone number, email ID and PAN number.
• Cost Averaging- SIP deals with market volatility in a systematic manner. One of the biggest benefits of investing in SIP is mitigating the market volatility by cost averaging. In cost averaging you buy more units of mutual funds when market is down. This means you're investing at all prices and when the market goes up or down the value of your investments is increasing. 
• No Lump sum Investment- A SIP can be invested for as less as Rs. 500. You don't need a hefty amount to start SIP. You can invest as much as you like depending on your savings or income. Even you can also get the tax deduction from selected tax-savings funds or schemes. 

An SIP can help you meet your financial goals and you can also secure your retirement with a SIP investment. An investment in a government security like a bond or certificate will have lower returns or an investment in shares will have higher returns or lower returns associated with volatility. If your financial goals are aligned with your SIP then you will reach your financial goals irrespective of the market movements.