Systematic Investment Plan is commonly known as SIP. It is a smart, efficient, and a hassle-free mode of investment. Moreover, SIPs are a flexible mode of investment, enabling the investor to increase their investment amount as per their convenience. Therefore, many AMCs allow their investors to increase their SIP contribution gradually every year so as to account for an annual salary or income rise.

SIP 500 per month

You can invest Rs. 500 per month since a lot of Mutual Funds AMCs allow this as a minimum investment. The three important factors for building a strong investment foundation via the SIP is to start early, invest regularly, and invest for the long term. Additionally, in many fund houses, apart from Rs. 500, the amount can be as low as Rs. 100 or the money can be transferred or switched in from other schemes.

Therefore, if you feel that to earn meaningful returns, large sums must be invested in Mutual Funds, then you have been mistaken. Mutual Funds have evolved in such a manner that it can be suited to every kind of investor over time. An aspect to be highlighted is that even if the investment amount is low, a disciplined and regular investment approach could help you build a large corpus over time.

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The process of investing in Mutual Funds
The first step is to choose the investment interval. Once the investment journey begins, your money gets automatically debited from your bank account at regular intervals (as decided by you) and gets invested in a specific scheme. You will be allocated a certain number of units according to the ongoing market rate (called Net Asset Value) for the day. Each time you invest the money, the units are bought (at the market rate) and get added to your account.

Benefits of investing in Mutual Funds

When you invest for a longer period of time, you accelerate the pace to build your wealth on account of the compounding effect. Many investors prefer this route to step into the financial markets and gain the benefit from compounding returns the best way possible.
SIP is effectively regular investments that help you attain your long-term objectives by building your wealth over time.

SIP inculcates the habit of disciplined savings in an investor.
Investing via SIP is a hassle-free process. All you need to do is instruct your bank to facilitate auto-debits in a periodic fashion from your bank account. Or, you could also visit the website of the fund house you are interested in and check the link for SIP registration link or tab.
SIP is an ideal mode of investment for people who do not want to make a lump-sum investment.

While SIP is not free from the market volatility, you needn't worry about the market movements. SIP is known as a powerful tool against volatile markets and can allow you to benefit from the Rupee Cost Averaging.

So, if you are looking for an investment to achieve your long-term goals without straining daily finances, then investing in Mutual Funds through a SIP is the best option for you. The benefits of investing in Mutual Funds through a SIP are more than one can comprehend. But before you start investing, you must identify your goals and time horizon to plan out your investments properly.

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Author's Bio: 

I'm 32 years old Mutual Fund Investor & I love to guide peoples in investing.