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leah Diaz made post

What are the benefits of investing in SIP?

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Shreya Karn answered.
2 years ago

Few benefits of SIP are as follows:
1. As a common person, one does not have the professional skills, ability, and understanding to invest in the market. Mutual funds are managed by professional managers and through SIP one can get a professional investment done.
2. Mutual funds invest in a gamut of investment options from equity, Government bonds, to Gold. This diversification reduces the risk and through SIP one can invest in a diversified portfolio with a small money.
3. With limited funds, diversification becomes impossible, but through SIP one can easily invest in a diversified portfolio of the Mutual fund. SIP can be started with limited funds with a small amount at a regular interval
4. SIP invests regularly at the market without timing the market and thus being unaffected from market fluctuation if invested for a long time.
5. In a longer-run, SIP creates wealth as it accumulates the units with every investment installments.