• SIP is a disciplined way of investing - It inculcates saving habit & discipline in investments by making you invest on a regular basis. A disciplined approach in investment, like the most things in our life, helps in achieving our goals i.e., in this case building wealth over long term.
• SIPs are easy on pockets - Investment through a SIP could be done with amount as low as Rs.100 per month. Also, you need not worry about timing the market while investing through a SIP. In a SIP, investments are made in regular intervals irrespective of the market highs and lows. So, you get more units when the markets are low and less units when the markets are at a high. This helps in averaging out costs and keeping the cost of a unit at a lower level. Since timing the market or deciding upon what is the right time or level of market is not easy, investing in Mutual Funds through SIP is preferred.
• You get the benefit of more time spent in the market while investing through SIP - With smaller amounts to invest through SIPs, you can start investing early. This gives the invested amount more time in the market which increases the probability of higher returns.