SIP. Review on Tips on Systematic Investment Plan

Sip is smart strategy to invest in a volatile share market.  While the ideal way to handle this kind of volatility is by taking no action, different kinds of investors react differently. Most private sector funds provide you the convenience of periodic purchase plans(through a Systematic Investment Plan), automatic withdrawal plans and the automatic reinvestment of dividends. You would basically need to give post-dated cheques(monthly or quarterly, periodic date of the cheque is fixed by the Asset Management Company). Most funds allow a monthly investment of as little as Rs500 with a provision of giving 4-6 post-dated cheques and follow up later with more.

Regular monthly investments are a good way to build a long-term portfolio and add discipline to your investment process.  I personally have invested in a fund for 1 year and I am not able to believe that I have saved so much.  It compels you to save and you are committed for a certain period which makes you save. time-tested investment strategies that works Start investing as early as possible - the power of compounding is the single most important reason for you to start investing right now as even a relatively small amount invested early will grow over the course of your working life into a substantial nest egg. Remember, every day that your money is invested, is a day that your money is working for you. That is SIP.