Investment Advice: How do I create SIP account



You may think of financial planning and wealth management as Do-It-Yourself projects, but there is no need for you to muddle through these on your own. Other than the robust reef of literature on the subject both online and offline, you can also easily find financial advisors to guide you through it.
A common enough suggestion to a person starting with the investments is to look at mutual funds, as a good option. You have the choice to invest a lump sum amount or as a SIP in mutual funds.
If you are someone who regularly saves a part of your salary, then start by investing at least 10% of your salary as a SIP. Keeping a simple and balanced portfolio always helps. Our simple profiling tool can help you Get Started.
What is Systematic Investment Plan?
Systematic Investment Plan is a mode of investment where one can invest fixed amounts of money on a regular basis. Many prefer SIP investments chiefly because they lack the surplus money to invest. A systematic investment plan (SIP) allows investors to put any amount starting with as less as 500 per month into the selected mutual funds in a periodic manner (on a monthly or quarterly basis).
This mode of investment works to generate wealth in the long term, by making use of the magic of compounding. The earlier you start your investments, the longer is the time you have to compound money. Another thing to consider is that since the investments are made at regular intervals, the impact of market volatility is negated to a great extent.
SIP helps combat volatility
SIP is the route to take if you are looking for ways to beat the market volatility. As illustrated below, you automatically buy more units when the market is low and less when the market is high, thus averaging out the purchase cost over time.
In times of volatility, we have seen how people normally tend to stop the investment and even resort to withdrawing the accumulated amount. One needs to keep panic at bay when the markets are volatile and continue investing in SIP. Wait for the result to bear fruit in the long run.

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