Earning money from your primary source of income is not enough. This is because it might not enable you to lead a quality life. So, this is when investments and savings play an essential role in one’s life, helping one build their empire at just the right time. Always remember that idle money in the bank account or even locker is a lost growth opportunity.
Investing money smartly to earn fruitful returns is essential, and one of the best ways to do so is to invest in a SIP (Systematic Investment Plan). So when I learned about the best mutual funds for SIP, I made a wise choice at that moment by investing in it.
What is SIP?
It is an investment scheme where a regular fixed amount of money s deducted monthly from your savings and is invested in your preferred Mutual Fund scheme. As the term indicates, it is a systematic method of periodically investing fixed amounts of money. This can be monthly, quarterly or even semi-annually etc.
What are the benefits of a SIP?
It offers various benefits, from providing higher returns to acting as emergency funds. So, if you plan to invest in SIP, first ensure that you do the proper research and development. This will help you choose the best performing mutual funds to earn a fruitful return.
It offers tremendous flexibility as they can be withdrawn as per your choice, meaning they do not have a fixed tenure. So, you can withdraw either the full or partial amount from your investment without incurring any losses.
- Higher Returns
Compared to traditional investment methods like fixed or recurring deposits, a SIP provides double the returns as its interest rates are pretty impressive. This also helps in beating the inflated costs.
(Tip: Always use a SIP Mutual Fund Calculator before investing to get to know exact returns.)
- Emergency fund
It is an open-ended fund without a fixed tenure. So you can easily withdraw it as a contingent fund, which helps during tough times and emergencies.
With SIP, one can start the investment with as small as Rs 500 monthly and watch it grow exponentially. Also, a SIP is so flexible that one can easily increase or decrease the invested amount.
What is a sip mutual fund calculator?
It is basically a tool that gives you an idea of the SIP investment returns. These calculators, readily available on various applications on a smartphone, help one experiment and gives an estimated return on investments.
It calculates the wealth gain and expected returns for the monthly SIP investment. Therefore, based on a projected annual return rate, one gets a rough estimate of the maturity amount.
Now, personally speaking, I use the ‘Bajaj Finserv: UPI, Pay, Loans’ on my smartphone, which offers various calculators, including this mutual fund calculator.
(Note: This content is not promotional. Readers are free to use any application.)