Are we on track to achieve the Important goals in our lives?
Buying a house
Buying a car
Children education
Children marriage
Retirement
To achieve the above mentioned goal we should follow a unique goal achievement programme through systematic investment plan. Under this plan investor invest a specific amount for a continuous period at regular intervals, say monthly or quarterly. By doing this, the investor has the advantage of rupee cost averaging and also helps him save compulsorily a fixed amount each month. The money is invested in the stock market by experienced fund managers. When you opt for SIP, you automatically participate in the market swings. Your amount of investment remaining the same, you buy more number of units in a declining market and less number of units in a rising market so that you do not panic in turbulent market conditions. As said earlier, SIP results in rupee cost averaging, which means that, when you invest consistently the same amount at regular intervals, your average cost per unit will always remain lower than the average market price, irrespective of how the market is rising, falling or fluctuating. It is very easy to become a systematic investor. All you need to do is plan you savings effectively and set aside some amount of money every month for investing in a fund. So if you want to stay calm and sail smoothly in difficult times go for systematic investment plans.
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