Is it wise to invest in SIPs?

Absolutely. If you want to enter stock markets but are unable to do so because of lack of time, making investments in SIP mutual funds is a secure and sensible option. Not only it develops a habit of saving and help you meet your financial goals but it also helps you to leverage the compounded interest that generates a higher return.

For how long should I invest in SIP?

You can start with the medium duration i.e. 7-10 years of time-frame. For this, you can invest in large & midcap, multicap, focused, elss, and value funds. If you want to make an investment for more than 10 years, it is recommended to opt for midcap, smallcap, sectoral, thematic, and gold fund. For higher returns and low risks, an investment of 10+ years is ideal.

Can I show SIP in taxes?

Yes, you can save your tax with SIP and get higher ROI. For instance, when you invest in Equity Linked Savings Scheme or ELSS via SIP you can claim a deduction of Rs 1,50,000 from your taxable income under the Income Tax Act, 1961.

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What are the benefits of SIP?

This story is from November 28, 2018

What are the benefits of SIP?

TOI-Online / Updated: Apr 18, 2020, 17:01 IST

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Systematic Investment Plan (SIP) is a simple tool that enables you to generate wealth over a longer time horizon with small investments at regular intervals.

NEW DELHI: Systematic Investment Plan (SIP) is a simple tool that enables you to generate wealth over a longer time horizon with small investments at regular intervals.
Here are some of the major benefits of Systematic Investment Plan:

1) Disciplined Saving: Systematic Investment Plan builds a discipline of investments. When you invest through SIP for a long term, you commit yourself to save regularly.

Each installment of SIP is a step towards attaining your financial goals.

2) Flexibility: It is a fact that you should continue your SIP investment for long term to generate better returns in future, however, there is no compulsion. You can choose to discontinue the SIP plan at any time during your investment cycle. You can also increase or decrease the amount of money being invested in a fund.
3) Long-Term Gains: SIP as an investment tool, holds the potential to deliver lucrative returns over a long investment horizon due to rupee-cost averaging and the power of compounding.

4) Convenience: There can be no convenient way of investing other than SIP for beginners. You can start SIP online or offline through any banking and financial service providers. Also, you do no need large lump-sum amount to start an SIP, just start with as low as Rs 500 only.
If you are still confused about how to start an SIP, check out ETMONEY app that provides various investment solutions with zero commission charge.

What are the benefits of SIP?
SIP or systematic investment plan offers you benefits like long-term gains, flexibility to withdraw or increase/decrease the investment amount, regular saving, and the facility to make minimum investments of Rs 500.
Is it wise to invest in SIPs?
Absolutely. If you want to enter stock markets but are unable to do so because of lack of time, making investments in SIP mutual funds is a secure and sensible option. Not only it develops a habit of saving and help you meet your financial goals but it also helps you to leverage the compounded interest that generates a higher return.
For how long should I invest in SIP?
You can start with the medium duration i.e. 7-10 years of time-frame. For this, you can invest in large & midcap, multicap, focused, elss, and value funds. If you want to make an investment for more than 10 years, it is recommended to opt for midcap, smallcap, sectoral, thematic, and gold fund. For higher returns and low risks, an investment of 10+ years is ideal.
Can I show SIP in taxes?
Yes, you can save your tax with SIP and get higher ROI. For instance, when you invest in Equity Linked Savings Scheme or ELSS via SIP you can claim a deduction of Rs 1,50,000 from your taxable income under the Income Tax Act, 1961.

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