Why is it important to increase a mutual fund SIP every year?
Why to Invest through SIPs?
Ever thought of an investing option being a no-brainer, which helps you to grow your money with regular top-ups? Yes, that is where SIP comes in! A Systematic Investment Plan or SIP is a way to invest in Mutual Funds. SIP is one of the simplest ways of achieving one’s financial objectives as it distributes the investment amount across various funds, enables regular investing, and results in compounding returns. Investing through SIPs tends to be a no-brainer investing option as the amount can be invested weekly, monthly, or quarterly based on one’s investing, earning, & risk appetite.
Imagine reaching your financial needs ahead of schedule. It’s possible by regularly increasing your mutual fund SIP contributions in line with your income growth. Often termed as the 8th wonder of the world, compounding has some unbelievable effects on regular investing as well as on regular step-ups in your investments, and tends to show some real progressive push in your portfolio when investing through SIPs.
Let us understand how your financial needs could be fulfilled through SIP in Mutual Funds while looking at the importance of adding a pinch of increase in the investments every year regularly.
Why Step-Up Your SIPs?
Investing in SIPs is a wise choice if done with a correct strategy. The benefits of SIP investment can only be seen when you top up your investment amount at regular intervals. Step-up or having your SIP amount increase is a part of your investing journey, which helps in building your wealth as well as accelerates your portfolio growth towards your aspirations much faster. Apart from this:
- Beats Inflation: Inflation, being a silent wealth killer, affects your actual returns. For Example, what seems like a good corpus today may not be enough 10-15 years down the line. That’s why simply investing isn’t enough, you need to grow your SIP to stay ahead of inflation.
- Rising Lifestyle Expenses: As your income levels increase, so do your expectations! A SIP amount set 5 years ago might have suited your lifestyle then, but your life and financial needs continue to evolve. Your expenses go up and so your SIP should too.
When your SIPs stay the same year after year, your financial growth slows down, while your dreams keep getting bigger. Step it up and grow with confidence.
Why Investors Need FPDs to Step-Up SIPs?
Many times the investors ignore the importance of increasing their SIP amounts despite their rising income levels, and a Financial Products Distributor plays a crucial role in making an investor understand when and how to increase their SIPs, and its impact on their portfolios. Some of the common things an FPD makes you realise are:
- Understanding Risk Tolerance capacity before initiating a top-up.
- Avoid stopping SIPs in between months to get proper advantage of top-ups.
- Always aligning your SIPs with your Financial Dreams.
With the right guidance from a Financial Products Distributor, you can make smarter and future-ready investment decisions.
Elevate Your Systematic Investment Plan (SIP)
Your Financial dreams aren’t static, so why should your SIP be? By increasing your SIP every year, you’re not just investing more; you’re investing smarter. It’s a simple tweak with a powerful payoff.
Let your SIP grow with your income, lifestyle, & dreams. Start small, Step-Up regularly, and watch your wealth take off. The sooner you increase your SIP contributions, the closer you get to achieve your dreams and financial needs.
Mutual Fund investments are subject to market risks, read all the scheme related documents carefully.