What is SIP and what are its benefits

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What is SIP and what are its benefits
What is SIP and what are its benefits

Do you know what is SIP and what are its benefits of SIP? You must have heard about SIP, many people have suggested you invest in SIP and you must have heard about it somewhere, so in today’s post, we will talk about SIP (Systematic Investment Plan). Know what is SIP and what are the benefits of SIP.

Saving is very important in today’s fast-paced life because any savings come in handy in difficult times, so SIP is the best way to save. SIP i.e. Systematic Investment Plan You can start investing in it by doing SIP with a small amount of your money. SIP gives you the opportunity to invest a fixed amount every month in your favorite mutual fund.

Although there are many ways to save, SIP is the best way to save, in fact, what you save from your earnings and you earn money from that saving money, in fact, it is called savings if you want regular income. So you can invest it through SIP. By doing SIP, you also get tax exemption, and those people who feel at risk in it, then in today’s post, what is SIP and what are the benefits of SIP (What is SIP) through them to clear your confusion about SIP Will try.

What is SIP

Under SIP (SIP Kya Hai), you can gradually convert your small amount into a big amount, as you must have heard a saying that drop by drop fills the pitcher, in the same way, SIP is, Investing through SIP keeps your financial condition right.

In this, you save 20 percent of your earnings every month, you have to adopt a smart way for saving if suppose a person’s monthly income is 50 thousand rupees, then he will get 25000 thousand rupees i.e. 50% of the income you have to spend on your daily expenses. And you can use 15 thousand rupees i.e. 30% of the income for your own expenses, whereas you can try to save 10 thousand rupees i.e. 20% of the income every month, in this way you can save about 1.20 lakh rupees every year. You can apply this rule to your monthly earnings.

You have to decide for yourself where and how much to invest the money or you can take advice from your financial advisor, keep in mind that you should avoid investing too much money in one place.

Let’s come back to the savings that have happened, on top of SIP, SIP is a very easy and simple way to invest with less loss. Under this, by investing a fixed amount every month or at a fixed interval, you can get a big amount in the long run.

SIP means an investor who invests a fixed amount in the stock market, mutual fund or gold ETF, etc. for a fixed period, it is called SIP, and people who do not have knowledge of the stock market and the stock market. For those unaware, investing through SIP is a much better solution.

SIP is designed for middle-class people as it will also give them experience in investing and those who are unable to invest big amounts can start investing from their low budget i.e. 1000 or 1500 rupees investment every month. Because through SIP, even a middle-class person can reduce a large amount from small investments.

Units of a company are bought in SIP, for example, if the Net Asset Value (NAV) of a company’s fund is ₹ 20, then by investing Rs 2000 in it, you will get 100 units of that company, and whenever you buy it If you want to sell, you can earn profit by selling at the market price going on at that time.

How to do SIP in Mutual Fund

Do you want to invest in Mutual Fund, if you want to invest in Mutual Fund, then you can invest in it in two ways.

In a first way, you can invest your money together in a mutual fund, which is called a one-time investment, and in the second way, you can invest your money in installments. In this, a certain amount will come out of your account and will be deposited in your mutual fund, it is called SIP.

If this idea is coming to your mind that how to start SIP, then you can start investing by creating your account in Up stock, in this you can easily create your account, below we are from the link of Up stock, you can use this application from there. You can start your SIP today by downloading it.

If this idea is coming to your mind that how to start SIP, then you can start investing by creating your account in Upstock, in this you can easily create your account, below we are from the link of Up stock, and you can use this application from there. You can start your SIP today by downloading it.

What are the benefits of SIP?

There are many benefits of investing in SIP, if you invest in SIP then you are exempted from tax, you can start investing in it with small amount and it is not as complicated as investing in stock market and not much risk in it. And it has the facility to withdraw money anytime, let’s understand in detail about the benefits of SIP.

1. Starting with a Small Amount

In SIP, you can start with a small amount, you can start with Rs 500 in SIP which can provide you a good amount in the long run, in this you have to invest a fixed amount regularly at a fixed time. That is, as we told you that you can start with a small amount, which can be easily withdrawn from your one month’s earnings.

2. Less risk

In SIP, you do not even have to take much risk, this risk is just negligible like there is risk in the stock market, there is no risk in it, if we put 10000 rupees together in the stock market, then you do not know that tomorrow will be in the stock market. What will happen is whether the market will go up or come down.

On the other hand, if we invest these 10000 little by little i.e. 1000 installments every month, then we can be saved from loss, similarly, SIP is under this we do not invest much money together and divide it into small installments. If you put it, you get more benefits.

3. Easy of Investing

Investing in SIP is very easy, for this you need an account, which we will discuss further, in this you have to choose a plan and link it to your account, which will be deposited on a certain date from your mutual fund account. Withdraws and deposit it in the plan of your choice.

For example, if you have selected an investment option of Rs 500 every month in the plan you have chosen, then Rs 500 will be transferred from your bank account to the SIP account every month, in which the money is used to buy the unit. It’s like we told you earlier.

4. Tax exemption is available

If you invest in SIP, then you do not have to pay any kind of tax in it, that is, when you invest in it or withdraw your invested money, then you do not have to pay any kind of tax but there are some schemes in it. For example, if you invest in SIP for 3 years, then you can get a tax exemption.

5. Advantage of Compounding

In this, you also get interest on interest, this is the advantage of compounding, when you invest in it, you get interest on the amount invested and the same interest is invested back, which gives you more benefit and your money. If it keeps on increasing, then this is the advantage of compounding.

6. Facility to withdraw money from SIP

By the way, most SIP schemes do not have a lock-in period, lock-in period means that you have to invest money for a certain time, and only after that you can withdraw your money, but in most SIP schemes this is not the case.

You can withdraw your money anytime and you do not select the SIP plan which has a lock-in period so you will not be under any restriction your money will remain with you and you can in SIP anytime as per your wish. Can continue to invest money and can stop anytime. With this, any investor not only gets good returns but also gets advanced liquidity keeping in mind their convenience.

You can start in SIP today with a fixed small amount, in this you do not need to do any kind of research nor choose any mutual fund, many things are automatic in it.

If you have kept even a small amount of funds i.e. as your savings, then you can start today with only Rs 500 and if you keep it running regularly, then the amount you have kept in the form of savings will be even more. You can get more money through SIP and you can spend the amount received through SIP as you want.

What did you learn in this post?

Today in this post you have taught what is SIP, and what are the benefits of SIP, we hope that you have got the answer to your questions that what is SIP and what are its benefits, you can share this information with your friends. Do share with them and also tell them what is SIP and what are the benefits of SIP, so that they will also know about SIP and they can take advantage of it.

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