Systematic Investment Plan helps the investors in bridging the gap between savings and investments. A variety of funds are available for retirement planning, child marriage, child education, and many other specific purposes. The amount is invested automatically in the selected scheme every month. If you choose the SIP investment method of investing, then a fixed amount is debited from the concerned bank at the selected date of every month through ECS or post-dated cheques provided by the investor. Through online SIP, you can invest, withdraw, and track mutual fund investment at your fingertips, which makes it the most user-friendly investment strategy. SIPs help to achieve the long-term financial goals by putting a certain amount of money systematically in the best SIP plans which is selected by the investor. You can select the best investment plan and the periodicity of investment according to your convenience. So, even if few holdings of your portfolio are declining, the rest of your portfolio can offset the loss as they are more likely to be growing.In simple words, Systematic Investment Plan, popularly known as SIP, is a method of investment in mutual funds which allows you to invest a fixed amount at regular intervals. To create a diversified portfolio, you should look for investments-stocks, bonds, cash, or others-whose returns are inversely correlated to each other. This ensures reduced volatility of your portfolio over time. So that your exposure to any one type of asset is limited. The investment portfolio regardless the timeframe should be balanced. Know how much you will earn on SIP investment with this mutual fund calculator. You should periodically check the results of the plan and make changes if applicable. Now implement your plan into action by starting the investment. Once the goal is set then identify and evaluate the financial instruments you want to invest in and is suitable as per your risk profiling. Then set up your long-term and short-term financial goals. Firstly, determine your current financial status that where you stand, how much money you have, etc. Planning your finances right is known as financial planning. ![]() What is the process of Financial Planning? ![]() Further classifying, if your child’s age is 2 years and your age is 50 years, then priority should be given first to retirement planning and after that to child’s education planning. For example, retirement and child’s education planning should be given more weight than the vacation and buying of new car. ![]() It can be done by prioritizing based on importance of the event and then further categorizing it by time period in which it is going to occur. To determine financial goals, one must prioritize the events of their life which will be requiring funds. Goal planning helps you become financially secure and channelize your current financial investments in such a manner that it generates returns over a time period which fulfils your targeted goals. In the same way, you need to analyze your current financial status, do financial planning and plan your future goals. If you want to reach somewhere, you need to firstly know where you stand and the direction of your destination.
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