
System Investment Plan
Benefits of Investing in SIPs
When you invest regularly through SIP and invest for the long term, the benefits are magnified by the compounding effect. Compounding effect ensures that you earn returns not only on your principal amount (actual investment) but also on the gains on the principal amount i.e. your money grows over time as the money you invest earns returns. And the returns also earn returns.
SIP is enable investors to buy more units when prices are low and fewer units when prices are high, averaging out the cost of investment and potentially reducing the impact of market volatility. This strategy can lead to better returns over time.
You do not have to take time from your schedule to make your investments. With a completed application form, one can just submit post-dated cheques or avail the Magnum Easy Pay (auto debit) facility and relax. You can monitor your progress of investment through periodic statement of accounts.
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How to invest in SIP?
While investing in a SIP is quite simple and hassle-free, there are a few steps to follow.