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# Invest Smartly with SIPs

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## Benefits of SIP

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A Systematic Investment Plan (SIP) allows you to invest an amount of your choice at regular intervals. Daily, weekly, fortnightly, monthly, or quarterly – choose the frequency that’s right for you!

• Affordable: Start with as little as Rs 100 or Rs 500.

• Flexible: Choose how often you want to invest.

• Growth potential:Build wealth over time with small instalments.

• Beginner-friendly: Invest in the financial market without worrying about timing it.

• Discipline: Inculcate an investing habit

SIP Calculator

Investment Amount

₹ 1000

₹ 1,00,000

Time Period (in years)

1 Year

30 Years

Expected Return (in %)

2%

13%

Invested Amount
Future Value

Returns
Returns
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## SIP calculator

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See how your wealth can potentially growth with this easy-to-use tool.

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## The power of Rs 1,000 monthly SIP

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With SIPs, an investment of even Rs 1,000 a month can potentially grow to almost Rs 10 lakh in the long term.
For example, let’s assume you start a monthly SIP of Rs 1,000 in an equity scheme and where you expect to earn a return of 12% per annum. This table below shows how your wealth can potentially grow with time*.

No. of years Invested Amount (in Rs.) Corpus Size (in Rs.)
1 12,000 12,809
5 60,000 82,486
10 1,20,000 2,32,339
15 1,80,000 5,04,576
20 2,40,000 9,99,148

*This is for illustration purposes only. This example assumes a fixed and consistent rate of return. Mutual fund returns are not guaranteed and can fluctuate based on market trends. Past performance may or may not be sustained in future and is not a guarantee of any future returns.

This growth is thanks to the power of compounding. When you invest in a mutual fund scheme, you potentially earn returns. If these returns are reinvested, you can potentially generate further returns on these. This phenomenon of earning returns on returns is known as compounding. As your investment base keeps growing each time you reinvest your returns, the potential growth of your investments can accelerate, creating a snowball effect.

As you can see, with SIPs, even small but steady investments have the potential to build wealth over time. And the earlier you start, the better it is.

## Why opt for an SIP to invest in mutual funds?

Investing in mutual funds is not difficult or expensive. SIPs give you the freedom to invest as much as you like at a frequency that suits you.

Disciplined investing: Once you set up an SIP, the instalment is debited from your bank account at your chosen frequency – daily, weekly, monthly etc. It’s a one-time process that can help you reap lifelong growth opportunities.

Professional management: Once you invest, investment experts do the rest. Each scheme is overseen by a fund manager, who designs and manages your portfolio based on their expertise.

Rupee-cost averaging: With rupee-cost averaging in SIPs, you can focus on your long-term goals without having to time the market. SIPs do the work for you.
In an SIP, a fixed amount is invested at regular intervals. So, you purchase more units when markets are down and fewer when they are up. Over time, this typically reduces your per-unit price – which means you earn more if the market goes up. This is known as rupee-cost averaging.

Flexibility: You can start a new SIP with an increased amount when your income increases. You can also decrease the amount, stop your SIP, or pause it if unexpected expenses come up.

## Make the most of your SIPs

• Before you start an SIP, define your financial goal, whether it's a vacation, a big purchase or a retirement corpus. Set a clear timeline.
• Determine how much you need to invest each month to reach that goal. You can use the SIP calculator above for help.
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