Learn What Are The Benefits Of An SIP - Angel BEE

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The Benefits Of Starting SIP
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What are the benefits of SIP?

• Starting an SIP is a simple and hassle-free
  process. Listed below are five benefits why every
  investor should opt for it
• It brings financial discipline in the life of the
  investor.
• Through the advantage of Rupee Cost Averaging the
  total cost of the portfolio is brought down.
• Since SIP doesnt require any rigorous planning,
  it is therefore easy to manage.
• Interest is earned not only on the principal
  amount but also on the interest generated through
  the benefit of the power of compounding.
• It helps investors reach their financial goals
  with ease.
• Let us understand the above mentioned points in
  detail

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• Financial discipline SIPs bring financial
  discipline to the life of an investor. Every
  investor is able to save a particular amount from
  their income and invest it into the funds each
  month. This ensures that there is no default in
  the investment and the investor plans his
  expenses keeping the SIP amount in mind.
• Advantage of Rupee Cost Averaging Due to the
  impact of the market fluctuations the Net Asset
  Value (NAV) of the fund will keep changing. So,
  you invest a fixed amount of money at regular
  intervals. This in turn ensures that you buy more
  shares of an investment when prices are low and
  less when they are high.
• Easy to manage SIPs are easy to manage since
  they do not need planning. Investors are not
  required to time their entry into the market and
  research the funds before investing.
• Benefit of the power of compounding Mutual funds
  enjoy the benefit of compounding of interest,
  which means investors earn interest not only on
  the principal amount but also on the interest
  generated on the same. This allows the investors
  to earn higher returns in the long run.
• Reach financial goals with ease An SIP is
  lighter on the pocket and enables investors to
  achieve the long-term financial goals in a
  stress-free manner. Investors can set up
  different funds for different goals and work
  systematically to achieve the same.

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