Gift a Systematic Investment Plan or SIP to loved one this New Year!

What is SIP or Systematic Investment Plan?

Before we gift a SIP (Systematic Investment Plan) to our loved ones lets understand what SIP is?

SIP is a way to invest money. Perhaps it is the greatest way to invest money. Systematic Investment Plan is considered as the eighth wonder because of the magic of compounding it brings along with it. It is a method of investing in mutual funds. SIP helps you bypass the risk in stock market.

It helps you invest in stock market in staggered manner. You chose a certain per-determined amount to invest every month or fortnight in mutual fund. Although some brokerage firms also offer the benefit of doing the same in the stocks rather than any mutual fund. Systematic Investment Plan is an excellent method, to save and invest to keep yourself financially adept for future.

SIP Investment

Mutual Fund is a winner

Mutual fund is the option we look for more eagerly these days when market is hovering at it life time high and valuations are not cheap either, with pace of economy still in question. Demonetization and reduced interest rates by bank to the people have left very little option for people to invest in many places. MUTUAL FUND is one of such avenue. Approximately, more than estimated 55,000 retail investors are entering into mutual fund on daily basis. This rate of participation was never seen before in Indian history of investment. Return on mutual fund is higher than Fixed deposits but it does have its associated risks. Risk in terms of capital depreciation or loss of capital.

SIP Investments for Kids

You can gift a SIP to the young ones this New Year. You should start a Systematic Investment Plan in name of your child and let the child participation be an active one. If your kids get gifts in form of cash from relatives, encourage them to invest whole or part of that money in MUTUAL FUND. This not only leads to capital formation but adds a habit of saving in children from very early on. Another importance of such investing is that you will never touch this money for future use as emotions are attached to this. Its only during utmost need or during crisis gets used.

SIP Investments starts a Rs.500 only

You can start the investment from as low as Rs 500 every month. That’s all one needs to start a SIP or to gift a SIP. Once you started a Systematic Investment Plan stick to the mantra- start early, invest regularly and stay invested for long term. Thus you allow the money to work for you. And then comes the magic of compounding.

Although many financial advisers will advise you invest for a minimum of 5 years tenure of Systematic Investment Plan but we ask you to go for as long as you can go. Many be 3 to 4 economic cycle. The real magic of compounding if visible after 14th year where the return goes exponentially.

Start SIP this New Year

So what have you decided this NEW YEAR for your kids. Are you going to surprise your child with SIP this year? It is just like planting a tree whose fruits will be relished by next generation. Stay hungry and stay foolish.

List of all Full-Service Brokers in India –

Angel Broking , Motilal Oswal , Kotak Securities , HDFC Securities , Sharekhan , India Infoline / IIFL , ICICI Direct , Edelweiss , Karvy , SBI Cap Securities , Geogit BNP Paribas , Anand Rathi , Religare Securities , Indiabulls Ventures , Just Trade , Ventura Securities , Marwadi Group , Aditya Birla Money , Axis Direct , SMC Global , GEPL Capital , IDBI Direct , GCL Securities , Arihant Capital , Mangal Keshav , MasterTrust , Networth Direct , Reliance Securities , Sushil Finance , LSE Securities

List of all Discount Brokers in India –

Zerodha , 5Paisa , Upstox / RKSV , Samco , SAS Online , Wisdom Capital , Trade Smart Online , Tradejini , Beeline Broking , Compositedge , RK Global , Achiievers Equities , Bonanza Portfolio , MDirect , TradingBells , EzWealth

List of Stock Broking Franchise in India –

Angel Broking Franchise , Kotak Securities Franchise , ICICI Direct Franchise , Sharekhan Franchise , Motilal Oswal Franchise , IIFL Franchise / India Infoline Franchise , SMC Franchise , Nirmal Bang Franchise , Sushil Finance Franchise , Profitmart Franchise

Important Blog Posts –

Top 10 Stock Brokers in India , Best Stock Broker in India , Top 10 Intraday Trading Brokers in India , Top 10 Sub Broker Partner in India , Full Service Broker vs Discount Broker in India , 10 Best Practices of Share Market Investment , Mutual Fund vs Real Estate Investment

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Gift a Systematic Investment Plan or SIP to loved one this New Year!
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