There is a popular myth that suggests that the stock market is only
for professionals and investing is rather complicated. This has forced
several investors to shy away from the stock market. Thus most ordinary
investors tend to over look the proven way of beating inflation and
protecting their retirement savings from tax erosion. A systematic
investment plan popularly referred to as the SIP dispels this myth and
provides a way for the ordinary investor to make extraordinary amounts
of money over a period of time.
Inflation and taxes greatly erode individuals disposable income and
hence their propensity to save. While it is possible to achieve
inflation adjusted returns through certain investments the investor may
still be required to pay taxes on these returns. In facts most income
from investment products like stocks, bonds, real estate assets and even
pension income is taxable. Hence a proper tax planning strategy is
mandatory for investors.
This is where an SIP comes in.
The beauty of an SIP is that you don't have to invest huge money of money upfront. Instead you have an objective in mind and work towards it gradually. You pick a regular investment schedule and invest consistently in the market over time. This way you take the element of market timing out of investing and simply Rupee cost average over time.
The beauty of an SIP is that you don't have to invest huge money of money upfront. Instead you have an objective in mind and work towards it gradually. You pick a regular investment schedule and invest consistently in the market over time. This way you take the element of market timing out of investing and simply Rupee cost average over time.
If the market goes down you buy more and if it goes up you buy less.
Either way you systematically accumulate wealth over time.SIP's can be
done on a wide range of individual stocks and mutual funds. You can have
a SIP strategy based on your age and risk tolerance. Are you
considering buying a car or even a house? Maybe you are planning for
your retirement or are planning for an extended vacation. Regardless of
what your aspirations maybe the SIP may be the right investment for
you.
With a plethora of investment products out there it can be a rather
daunting task for the average investor to sift through all of them. Look
no further than one of India’s largest fund families Birla Sun Life.
The range of products offered by Birla Sun Life takes the guess work out
of investing. Recently Birla Sun Life rolled out their Sabse Important Plan (#BirlaSIP).
The Sabse Important Plan
(#BirlaSIP) helps you get familiar with the world of SIP investing and
gives you some unique SIP options on some world class investment
products run by some of the top asset managers in India. There are a
wide range of mutual funds available at your disposal on which you can
custom build your SIP. You can craft your own and unique asset
allocation strategy by checking out Birla Sun Life’s asset allocation
tool.
The Sabse Important Plan (#BirlaSIP) seeks to be your one stop shop for all your SIP needs. As an investor you get the following benefits:
a1) You accomplish your goals steadily over time.
b2) You accumulate significant wealth over time without worrying about the gyrations in the market.
c3) You Rupee cost average over time into some of India’s best mutual funds.
d4) You generate significant returns over time by taking relatively lower risk.
