Nowadays, investing has become as easy as ordering food from your smartphone. You just need an internet connection, a reliable smartphone application, and you are more than good to go.

Around seven and a half months ago, I was looking for the best mutual funds for SIP on the internet to grow my wealth. This is because setting up long-term financial goals is very important, and in order to achieve them, you have to be a lot of consistent and dedicated.

What is a SIP?

SIP, or Systematic Investment Plan, is one of the most popular investment schemes that enable individuals to invest small amounts of money at regular intervals, typically monthly or quarterly, into a mutual fund scheme. 

In this investment instrument, the amount is deducted automatically from the investor’s bank account, and the mutual funds units are purchased at the prevailing net asset value (NAV) on a particular date. 

(Tip: Use a SIP Interest Calculator before investing your hard-earned money.) 

SIP investment is a disciplined and convenient way of investing in mutual funds, as it helps investors avoid the need to time the market and invest a lump sum amount at once. Instead, investors can start with a small amount and gradually increase their investment as per their financial goals and risk appetite.

(Disclaimer: This investment is subject to market risks. So, read the documents carefully before investing.) 

What are the advantages of a SIP?

• Tax Benefits

This factor depends on the scheme and holding period. So, if ticked right, SIP investments may also offer tax benefits to the investors. For example, Equity Linked Saving Schemes (ELSS) offer tax benefits under Section 80C of the Income Tax Act.

• Investment Discipline

As you all know that a SIP allows investors to invest small amounts monthly or quarterly, therefore, this helps them to develop a discipline when it comes to investment. In the long run, it inculcates the habit of saving and investing regularly and avoid impulsive investment decisions.  

• Convenient

Investing in SIP is quite convenient as it allows the investor to choose the amount of the investment, frequency as well as duration as per their financial goals. Further, they also have the power to increase or decrease their investment amount or stop the SIP anytime they want.

Well, the benefits that this investment offer are endless. It’ll help the investor to avoid the need to time the market and invest a lump sum amount at once. Instead, investors can start with a small amount and gradually increase their investment as per their risk appetite. Moreover, tools such as SIP Interest Calculator have made things easier for potential investors. 

Conclusion

Investing in the best mutual funds for SIP is one of the most beneficial investments in the current era, as it offers desirable returns in the long run. So, if you are planning to grow your wealth exponentially, pick up your smartphone and plan your investment now.