Thursday, 25 September 2025

Investing Guide #57: What is a SIP & Why It’s the Best Way to Start Investing


 

Scared of Investing? Start With SIP — The Safest Path for New Investors

SIP = Systematic Investment Plan. It’s the safest, smartest, and most flexible way to invest in mutual funds — even if you’ve never invested before.


πŸ“˜ What is SIP?

Instead of investing ₹60,000 at once — you invest ₹5,000/month over a year.
This spreads your cost, reduces risk, and builds habit.


πŸ“ˆ Why SIP Works for Beginners

  • No timing needed — works in up and down markets
  • Disciplined investing — builds habit
  • Rupee cost averaging — more units when market is low

πŸ’Έ Start With As Low As ₹100/month

Yes, you can start small — apps like Groww, Paytm Money, Zerodha Coin support low-ticket SIPs.


πŸ“Š Ideal SIP Duration

  • Minimum: 3 years
  • Ideal: 5–10 years for major wealth building
  • Longer = better compounding

Conclusion

Don’t wait to invest big. Start with what you have — ₹500, ₹1,000 — and let time grow it for you. SIP is the beginner’s best friend.


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