Small Is Powerful
with Compounding
What is SIP and Why should you do it?
A Systematic Investment Plan (SIP) is a disciplined investment strategy that allows you to invest a fixed amount regularly in mutual funds. SIPs make investing accessible to everyone, providing a flexible and convenient way to build wealth over time. Whether you're a seasoned investor or just starting, SIPs help you take advantage of market fluctuations and grow your investments steadily.
Clubbed with our Hi-Quality, Hi-Growth Investment Process and backed with our Robust Risk Management Framework, our Equity SIPs can be your best bet for wealth creation.
Benefits Of SIP
Disciplined Savings
Regular investments inculcate a habit of saving, ensuring a consistent addition to your wealth. In equities, discipline is the most important key to wealth creation.
Power of Compounding
Earn returns not only on your principal investment but also on the returns generated, leading to exponential growth. Remember the power of “t” in the formula of compound interest!
Rupee Cost Averaging
Invest in both rising and falling markets, reducing the impact of market volatility. So no need to look at markets and worry every day!
Flexible Investments
Start with as little as ₹500 and adjust your investment amount as per your financial goals. Highly advisable to fight inflation and maybe reach your goals sooner.
Convenient and Hassle-Free
Set up automatic deductions from your bank account, making investing effortless.
Goal-Based Investing
Set up automatic deductions from your bank account, making investing effortless.
Liquidity
SIPs offer the flexibility to redeem your investments anytime, ensuring liquidity.
Transparency
Regular updates and statements keep you informed about your investment performance.
Tax Benefits
Certain SIPs offer tax deductions under Section 80C of the Income Tax Act.
Professional Management
Your funds are managed by expert fund managers, ensuring your investments are in safe hands.
SIP Calculator
SIP calculator estimates the amount you'll accumulate from monthly investments based on an expected return rate over a set duration
Your Monthly SIP Amount
₹
Duration
Pro Tip: Time drives compounding
Investment Amt
₹ 3,00,000
Estimated Amt at 13%
₹
The Power of Compounding
Here's the compounding journey of your investment amount of ₹3 Lakhs
In 5 years, ₹3 Lakhs can grow to ₹
If you stay invested, it could reach ₹ () in around NaN years, with compounding speeding up growth to ₹ (), and eventually multiplying to or as seen in the table/graph.
Take-away: Compounding helps your investment amount to grow faster if you stay invested.
| Estimated Amount | Period |
|---|
SIP Offering
Direct Growth
0Y Returns: 0 % p.a.SIP of ₹ 0 since inception ( years) has compounded the invested value to ₹0
- Disclaimer:
- The above calculator is only for explanatory purposes and the graph explains the power of compounding on a durational timeline based on the Monthly SIP Amount and Duration chosen by the user.
- MOAMC doesn’t make any guarantee for that the calculation depicted above. Investors are requested to consult financial advisors and conduct their own research before making any investments.
- The results are based on user inputs and should not be considered as investment advice. Users should seek the advice of a qualified financial professional before making any investment decisions.
- The creators of the calculator and its affiliates shall not be held responsible for any financial losses resulting from the use of the calculator.
- Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
- SIP is allowed in select open ended schemes. Refer the Scheme SAI, SID, KIM for detailed information.
The SIP Resolution
While investing in a SIP, it’s always better to keep a few things in mind and practice them without exceptions. At MOAMC, we call them the SIP Resolutions.
Increase Your Investment Amount Regularly
As your income grows, consider increasing the amount you invest in your SIP. This can accelerate your wealth accumulation over time.
Stay Invested for the Long Term
SIPs work best when you stay invested for the long term. Avoid frequent withdrawals and stay committed to your investment plan.
Choose the Right SIP Fund
Select a SIP fund that aligns with your financial goals, risk tolerance, and investment horizon. Diversifying across different types of funds can also enhance your portfolio's stability.
Monitor and Rebalance Your Portfolio
Regularly review your SIP portfolio to ensure it remains in line with your goals. Rebalance if necessary to maintain the desired asset allocation.
Opt for SIP Top-ups
Some SIPs offer a top-up feature where you can increase your SIP amount periodically. This can help you take advantage of market opportunities.
Consider Systematic Transfer Plans (STPs)
STPs allow you to transfer a fixed amount from one fund to another, helping you manage risk and optimise returns. Stay Informed: Keep yourself updated with the latest market trends and economic developments. This can help you make informed decisions about your SIP investments.
Seek Professional Advice
If you're unsure about managing your SIP portfolio, consider consulting a financial advisor. They can provide personalized guidance based on your financial situation and goals.
FAQ
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