4 reasons why investing in SIP is a good decision
1. It brings discipline into your investing habits:
2. It allows you to decide how much you wish to invest:
You can invest as little as Rs.500 per month through SIP. Smaller investments mean there is no need to set aside a lumpsum, making it is easier on your wallet.
3. It provides price averaging:
When you invest through SIPs, you get more units when the NAV is low and fewer units when the NAV is high. As a result, your cost per unit is lower than the simple average NAV during the period. This is known as rupee cost averaging, which is beneficial to an investor.
4. It takes away the need to time markets:
An average retail investor may not have the time to monitor their investments regularly or the ability to time investment to the market movements. In such cases, SIP investing helps you in averaging costs and reduces risk related to lumpsum investments.
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