Why should you consider starting a mutual fund SIP early?
Logic is simple! Whether it is building your house or your property, it all takes time. If you start investing in the Mutual Fund program using SIP (Systematic Investment Plan) *, then you can quickly increase your investment and that too easily. On the other hand, if you start late, you will have to invest a lot of money or wait a long time to build wealth or meet your goals.
Here are the benefits of investing in early SIPs:
You can benefit from the power of consolidation: The advantage of consolidation is that it allows you to make money on your main investment and the return that you continue to add to it. As you continue to invest, the profits you make from your investments are reinvested to give you the opportunity to make more profit. That is why if you start your investment journey early, you will give your money enough time to integrate and grow.
To help you understand how it works, let us consider the following example.
Two partners - Akhil and Nikhil began investing in different stages of their lives. The table below shows how their investment can grow over the years.
As you can see, Nikhil had to invest about three times as much as Akhil in order to get closer to Akhil's retirement company. And although Akhil started investing in small amounts, the number of years he spent investing made a huge impact on his final chorus.
You can add financial discipline to your life: When you start a SIP, every month the fixed amount is automatically deducted from your bank account and deposited in your favorite wallet. So, you usually set aside that amount every month. Because of this, you often adjust your spending habits. All of this contributes to good financial health.
You can achieve your financial goals systematically: With SIPs, you can strive to meet all major and minor goals. Ideally, you should have a separate SIP for each goal. This allows you to go all out at once without deviating from your original financial plan.
You can achieve your financial goals systematically: With SIPs, you can strive to meet all major and minor goals. Ideally, you should have a separate SIP for each goal. This allows you to go all out at once without deviating from your original financial plan.
You can manage investment risk: Equity Funds may change over time. But they often do so over time. Also, with SIPs, you have the benefit of a rupee cost estimate where you can purchase additional units where the Net asset (NAV) value of the system is low and a few units if the NAV system is high. This helps to reduce your investment costs and to deal with market instability. So, starting your SIP early can help you reduce your risk of investing.
Therefore, the earlier you start investing with SIP, the more you benefit. However, do not worry if you have not already started your investment journey. Do it today because every day is a good day to start SIP
