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Investment plans for everyone

25 Oct 2022 0 COMMENT

Introduction

Life success depends on discipline; a little monetary discipline can go a long way. We all think about investing, but sometimes, our misconceptions prevent us from achieving our goals. Are you worried about not having enough money to invest? Here’s an option for you. Systematic investing can help you make small investments. Yes, an option for everyone!

What’s SIP?

Systematic Investment Plans (SIPs), commonly known as SIPs, are a payment method offered by mutual funds to investors to help them manage their investments in a disciplined manner. Through SIPs, investors can set up recurring payments at predefined intervals into a mutual fund scheme of their choice. The predetermined SIP periods can be weekly, monthly, quarterly, semi-annual, or annual. This means you have an option to invest an amount as small as Rs 500 as frequently as possible.

How is an SIP beneficial?

First, you must have an idea of how much you will need for your long-term goals, and start investing in either a lump sum or a SIP, depending on which method is more convenient for you. If you currently invest in the appropriate equity mutual funds, keep making SIPs.

It's possible that your current income might not be sufficient to cover the necessary goals and SIPs. As your income rises, increase your SIP payments to move closer to your goals. If you have monthly savings, invest them in SIPs in high-quality liquid funds or funds with extremely short durations.

Also, an investor who chooses to invest via SIP can invest in a time-bound manner without worrying much about the state of the market. This would be because of rupee cost averaging, whereby the fund manager buys more units when the net asset value of a scheme (NAV) is low and fewer units when the NAV of the scheme is high. Let’s not forget the power of compounding: you can earn additional returns by reinvesting your earned returns. Thus, helping your investment grow with time.

Let’s take an example and understand the benefit of SIP:

Three groups with starting investment with Rs 1,000, Rs 5,000, Rs 15,000

Monthly Investment

Rs 1,000

Rs 5,000

Rs 15,000

Assumed Rate of Return

12%

12%

12%

Time Period

15 Years

15 Years

15 Years

Invested amount

Rs 1,80,000

Rs 9,00,000

Rs 27,00,000

Total Corpus Value

Rs 5,04,576

Rs 25,22,880

Rs 75,68,640

*The calculation mentioned in the above table is for illustration purposes only.

As you can see, even with a small investment of Rs. 1,000 a month, you can reach a total corpus of over Rs. 5 lakhs in 15 years. If your income allows for you to save Rs. 15,000 a month, you can save almost Rs. 76 lakhs!

How to align it with a goal?

Having disorganised investments is like a car with wheels pointing in various directions and moving at different speeds.

We realise that our funds may need better direction as we get older, and our responsibilities become more prominent. As the impacts of inflation become more apparent, we begin to wonder how much things will cost in the future. The loans we have already paid off and are still paying off indicate how important having a substantial corpus is.

 If you ever feel stuck in a situation like this, Check out LIFEY.

· Take the first step

It's nothing to do with how much you earn. It's about much you are willing to set aside. It is never too late to start your investment journey.

· Set time bounded goals

It is simple to set time-bounded goals with LIFEY. You can decide the period of your goals; anything near five years is short term and after ten years is long term. Put a goal amount required to achieve your goals.

· Track and modify

LIFEY helps you see all your investments in a single dashboard under different names. Now you don't need to compromise on goals like a child's education, wedding fund, or retirement.

With LIFEY, you can maintain a balance, track your investment and even modify the amount to reach the goal. The best feature of LIFEY is it analyses your risk profile and helps you get the best return on investment.

If you go through these steps, you should be well on your way to focusing your investments. You will reach your goals more quickly with LIFEY the sooner you start. LIFEY is as good as a financial planner, if you can’t afford one. No matter what your goal is, you can achieve it with systematic investments.

Disclaimer: ICICI Securities Ltd.( I-Sec). – AMFI registered Mutual fund distributor. Registered office - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.  AMFI Regn. No.: ARN-0845. SEBI research analyst Registration no.-INH000000990. We are distributors for Mutual funds and all disputes with respect to the distribution activity / research would not have access to Exchange investor redressal or Arbitration mechanism.

Please note that Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. I-Sec does not assure that the fund's objectivewill be achieved. Please note. NAV of the schemes may go up or down depending upon the factors and forces affecting the securities markets.Information mentioned herein is not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

The contents herein above shall not be considered as an invitation or persuasion to trade or invest. Investors should make independent judgment with regard suitability, profitability, and fitness of any product or service offered herein above. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

The client agrees and acknowledges that the LIFEY tool / facility provided by ICICI Securities are not intended to supply investment, financial, tax or legal advice. It is not investment advisory service and any observations concerning any security or investment advisory is not a recommendation to buy, sell or hold such investment or security or to make any other investment decisions. Client acknowledges and agree that any use of the services, any decisions made in reliance on the aforesaid services, including any trading or investment decisions or strategies, are made at your own risk. It is entirely client’s responsibility to assess the appropriateness, suitability, and practicality of the investment. The said services is just incidental to the distribution of mutual fund.