5 reasons why you should start an SIP

1. Rupee-cost averaging

An SIP helps you average out the cost of your investments over a long time. When the markets are high, you buy fewer units, and when the markets are low, you buy more.

2. You can start with a small sum

You can start an SIP for as little as Rs 100-1,000. With this small sum, you can get a completely diversified portfolio, whereas, for stocks, you need to invest a lot more.

3. Creates a habit of saving

It helps in inculcating a habit of investing, as each month, a portion of your salary is deducted from your account and invested.

4. Syncs with a regular income stream

It also goes well with your money cycle – you earn every month, you spend every month, and you invest every month.

5. Creates a disciplined approach to investing

An SIP helps you avoid the draining and risky habit of timing the market. Instead, you invest regardless of the market condition – high or low.

Our advice

Stay regular with your SIPs, and when you get an increment at work or come across any surplus, you can step up your SIP.

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