As an individual, you may have several wants such as higher education, trips, retirement, gold jewellery, fancy bags, clothes with brand tags or giving back to your family. As a wife, you may want to surprise your partner with something grand or travel the world with him hand in hand. As a mother, you may want your child to get the best education
, or a yearly fun-filled vacation. As a daughter or a daughter-in-law, you may want your parents to stay healthy and fit, or proudly live with sufficient money in their retirement kit.
Did you know you may be able fulfil some of your goals with an amount as low as Rs 500 per month? Yes, it is possible without a magic wand!
Introducing Systematic Investment Plans (SIPs)
An SIP is a mode of investing in Mutual Funds. When you start an SIP, a fixed amount of money is deducted from your bank at regular intervals and is invested in the fund of your choice. The good news is that you need not set aside a large sum to start an SIP. You can begin with as low as Rs 500. And you will be surprised to know that this small amount can grow to lakhs and more with time.
For example, your monthly SIP of Rs 5000 for 30 years can bring you about Rs 1.04 crore*. If a small sum can do such wonders, imagine how much you can accumulate if you increase your SIP amount.
*Above is for illustrative purposes only and is not an indication or guarantee of returns. Illustration is based on monthly SIP investment at assumed annual interest rate of 10%.
The benefits of SIPs
Financial discipline: You are disciplined and there are no two ways about it. But many a time, you prioritise the needs and wants of your family and so it is quite possible that you divert your investment money towards their happiness. But since SIPs are automated, you will save and invest regularly and, in turn, become financially disciplined.
Flexibility: There are different types of SIPs. Some may allow you to adjust your SIP amount as per your financial situation, whereas, some may allow you to stay invested till 2099 by default. Likewise, there are other flexible features too. You can pick the one that best suits your situation.
Rupee cost averaging: With so many responsibilities, you are bound to be busy. You do not get the time to study and time the market. With SIPs, there’s absolutely no need to time the market. This means you can buy more units when the prices are low and fewer units when the prices are high. This helps in averaging out the cost of investment over time. This advantage of SIPs is called rupee cost averaging.
Power of compounding: The power of compounding not only allows you to earn returns on your principal money but also on the returns that get added to your original investment. This may help you convert a small sum into a large amount over time. For compounding to work, you must start investing early and be regular with your SIPs. Since SIPs are light on the pocket, you can start now and invest systematically.
To help you understand how it works, let's check out the following example.
Two colleagues - Archana and Nikita began investing at different stages in their lives. The table below shows how their investments might pan out over the years.
To know how to start your journey through SIPs, click here: https://www.utimf.com/articles/how-to-start-sip-online
Dear women, you can achieve every financial milestone with ease. So start your SIP today to take the solo trip which you have been waiting for.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This creative is under Investor Education and Awareness Initiative of UTI Mutual Fund. To know about the KYC documentary requirements and procedure for change of address, phone number, bank details, etc. please visit https://www.utimf.com/servicerequest/kyc. Please deal with only registered Mutual funds, details of which can be verified on the SEBI website under "Intermediaries/market Infrastructure Institutions". For any queries, grievance redressal investor may reach out to the respective fund house. Additionally, investor may lodge a complaint at https://scores.gov.in , a portal provided by SEBI (SEBI Complaints redress system) if not satisfied with the response given by the fund house.