Systematic Investment Planning (SIP)
All of us have plans for the future – a new car, your own house, a dream vacation. Now with our Systematic Investment Planning facility achieving your goals is easy.
A systematic approach to building wealth
Systematic Investment Planning or SIP is a way of achieving your financial goals by investing a fixed sum of money on a regular basis.
You can avail our Systematic Investment Planning facility with any of our mutual fund or pension scheme with as little as Rs. 500 per month. This means that instead of committing a large sum of money at one time, you can invest small amounts according to your convenience and ability.
Start Early + Invest Regularly = Grow Wealthy
That’s the motto of Systematic Investment Planning (SIP). It’s an almost magical formula for growing your money over time to achieve the biggest of your financial goals.
Benefit of starting early
Time plays an important role when it comes to SIP. The sooner you begin investing, the more time your money will have to grow. If you delay the process, you will almost certainly have to invest much more to achieve a similar result.
If you start investing at the age of 25 and invest Rs. 1,000 every month for 10 years and then stop, your money will grow to Rs. 22.6 lacs (assuming a growth rate of 14% p.a.) by the time you are 55 years old. On the other hand if you started investing Rs. 1,000 at the age of 35 and continue to do this for 20 years and then stop, your money will grow to Rs. 11.4 lacs (assuming a growth rate of 14% p.a.) by the time you are 55 years old. Therefore if you start investing early, your savings would have appreciated to more than double the amount compared to delaying investing.
Benefit of investing regularly
Because SIP requires that you to invest on a regular and ongoing basis, it allows you to benefit from the magical power of ‘compounding’ to grow your savings. Compounding is a financial concept in which the value of an investment increases over time due to compounded interest, creating a multiplying effect on your savings (earning profit on the principal and the accumulated profit)
For example, if you invest Rs. 5,000 every month using SIP, your amount can grow to around Rs. 50 lacs at the end of 20 years (assuming a growth rate of 14% p.a.). If this amount was left idle (not invested) it would be be equivalent to only Rs. 5 lacs at the end of 20 years!
Want to find out how much your savings can grow with SIP?
This depends on when you start, how much money you save regularly and for how long.
- Use our SIP Savings Calculator to find out how much your regular savings can grow over time.