We all might have heard the Saying
"Little drops of water fills the empty ocean"
Just like the small and little drops of water that can fill the entire empty ocean in the long run, the same is the purpose of Systematic Investment Plan
A systematic investment plan or SIP (as it is more commonly known) is a way to invest in mutual funds with little sums of money on regularly basis say monthly or quarterly, over a longer period of time. These small and regular investments will help in growth of your wealth in the long run and you will surely reap the benefits
of the fruits that you have planted by doing systematic investments of your hard-earned money in mutual funds.
The Idea of SIP
is to set apart a sum every month or quarter, and use that to buy units of a particular mutual fund, regardless of its price. People like such a system very much as it helps them save regularly and build up an investment with low amount. These investments are done to achieve our future financial goals like buying a house, child's education, child's marriage, retirement planning and so on. As not all of us are born with a silver spoon in mouth, each one of us has a desire to be rich. We always want our hard-earned money to grow at a pace that not only fulfills our financial goals and needs but also helps us to improve our standard of living from good to better to best.
Thus it is very much essential for all of us to do the proper systematic investment planning of our available financial resources in such a way that we can generate the maximum possible returns out of them with minimal risks. For this, you can either plan investments by yourself, or consult an expert.
Generally a financial planner who helps in doing your investments wisely along with continuous monitoring of the performance of your portfolio so that you do not miss the best opportunities available in terms of investing and also do not take undue risk on your portfolio. A financial planner will help you in giving meaning to your investments by inclining them with your financial goals. By this way, you would know where you are going and it will become easier for you to chart out an appropriate pathway towards the relevant destination point.
Systematic Investment Plan covers the entire spectrum of financial plannings you would need to do in life like Child's Marriage Planning, Retirement Planning, Child's Education Planning etc.