Is SIP your 'Good EMI?

Yes! We all have dreams that we hope to fulfil but the fact remains that whether it is about providing the best education for your child or leading a good retired life, we simply don’t do enough to realize these dreams.

When we look into our busy lives, many of us live with the misconception that ‘Since I don’t earn enough, I don’t really have much to invest! Plus, who’s in a hurry?’

But seriously? Who has the time?

Wouldn’t it be easier if someone guided you to make informed decisions? Here’s where Systematic Investment Planning (SIP) comes into the picture.

How does an SIP work?

It’s an effective way to accumulate wealth in an organized manner through regular investments in mutual funds. Even if you aren’t raking in the moolah, it doesn’t really matter, because you can start your investment journey with something as low as Rs.500. That’s the price of two movie tickets on a weekend!


Rules of SIP investment:

Don’t fret during a downturn or a market slump: Don't worry about timing the market. The "time in the market" is what actually matters. The SIP simply allows you to buy mutual fund units at a lower price and potentially earn higher returns when the market sees an upswing.

Connect SIP with your personal goal: From saving for your child’s education to keeping your eye on a trip you’ve planned, you can decide to invest in a short-term, medium or long-term plan. All you need to think about is how much do you need and when? However, be conscious of the mix you have chosen to invest in as it depends on your investment horizon. Equity funds are known to be a good tool for long-term investment, but if you are looking at something short-term, then debt funds may suffice.

Start Early: Imagine if you got a head start in a race called life? Would it not make the run a bit easier? That’s exactly what you should do. Start as early as possible even if it is for smaller amounts. The sooner you begin investing, the better is the compounding effect.

Don't procrastinate: An old adage says, “You can’t plough a field simply by turning it over in your mind.” This stands true for your investments also. So, start today and don't wait for the tide to settle.

So, Let the 'Good EMI's begin'

Happy Investing!

Virtuous Financials