What are the benefits of SIP?
Updated
- Discipline: Systematic Investment Plan (SIP) instalments are made at regular intervals, i.e. weekly on a predetermined day. This disciplinary approach of regular investments is of big advantage to the investor as he/she doesn’t need to actively track the market.
- Convenience: SIP is a hassle-free process as the amount is automatically debited from the Fiat wallet and invested in the scheme chosen by the investor. Since the money is automatically deducted from your account, you become more responsible with your money.
- Flexibility: Investors can choose their preferred instalment starting with an amount as low as INR 200 and contribute weekly. And the SIP will continue as normal until investors themselves decide to discontinue it.
- Rupee-Cost Averaging: SIP lowers market volatility risk in the long-term period. When the markets are high, you buy less quantity of your crypto assets through SIP. When the markets are down, you buy more quantity for the same amount. This enables you to average your investment cost over time.
- Compounding: SIP instalments smartly enable wealth creation over the long-term period. Your earnings are reinvested and you benefit from the power of compounding.
- No Lock In Period: You can continue your SIP instalments for as long as you like and cancel anytime as per your convenience.
