SIP your way to wealth

Young call center executive Satish, 23, wants to buy his own home before he turns 30, but is not sure whether his current savings and salary levels are enough to fulfill his future goals. His income has though just touched a level where he can think of making decent investments. He can invest about Rs 2,000 on a monthly basis.

On the other hand, Mr. Chandran, a retired private sector employee, wants to invest his post-retirement corpus in the best possible manner. He can easily spare Rs 6,000 a month, but he is not so keen on bank deposits, NSC or even postal saving schemes because he is looking for a higher rate of return.

What are the most suitable investment options for both? Well, the simple yet sure strategy for both Mr. Chandran and young Satish is SIP.

What and why SIP?

What is SIP? Why is it imperative to invest in SIP? Obviously, both would want to know because their profiles are so vastly different! We try to explain here.

There are multifold advantages of investing your hard earned money through SIP or Systematic Investment Plan.

1. SIP is a methodical way of investing in the stock markets, designed for those keen on building wealth in a steady albeit assured manner over a period of time.
2. SIP is an excellent option for those investors who wish to get their portfolio going, but do not have a large pool of savings to start with.
3. Anyone can subscribe to SIP by starting with the least possible investment amount (to start with) on monthly basis for one year or more.
4. SIP helps you to plan and secure a better future for you and your family.

You will learn more about SIP and its power of compounding in the subsequent posts.