Is SIP, the risk-free way to gain higher returns?

Investment is one of the best methods to start your saving. If you are the one who is looking to begin your investment journey then SIPs tops the list of methods that can fetch you good returns at a minimal risk. However, what happens to be crucial is – investing wisely. Target to Wealth offers you not only the best investment advice but will also ensure that you get best possible returns.

What is SIP?

Systematic Investment Plan or SIP is considered to be one of the smartest financial planning tools. SIPs, which are based on the concept of the power of compounding, are one of the greatest methods to build and maximize wealth. It lets you invest a predetermined amount at a regular interval chosen according to your convenience.

Seems simple, yes it is!! However having the right direction is significant. Here is where the experts at Target to Wealth, pitch in with their years of experience in assisting you to save money for future use in a well planned manner. SIPs are considered to be the most efficient and convenient ways to invest in equity and debt market and we, at Target to Wealth guides you through.

Is SIP the risk free formula?

The answer to this varies. Before we move on to answering the above question; let us try to remove some misconceptions about SIPs:

SIPs are not an investment option rather only a mode i.e. SIPs cannot be blamed for the poor performance, if any.
SIPs can also result in losses i.e. it is not necessary that they will always produce positive returns. They just let you average out the cost however they fail to assure capital protection.

SIP returns of equity funds vary since equity markets are volatile and have a direct impact on SIPs. Therefore the returns can be both positive as well as negative for the investors.

Moving on to answering whether SIPs are the risk formula or not, let us take a sneak peek into the perks they offer:
SIPs allow you to invest at a regular interval that helps in developing an investing habit which is helpful in the long run. Investments which are made in bulk are risky whereas SIP allows you to invest in small proportions.

The advantage of rupee cost averaging build the base of SIP. Rupee cost averaging is a strategic approach that eliminates the need to time the market.

SIPs are simple and an easy to implement method. SIP allows an auto debit option and hence you do not need to worry about the process of depositing money.

SIPs are for long-term and can be started as early as possible allowing a return rate of around 10% p.a.
Be careful while investing in SIPs

“All that glitters in not gold”, holds true here as well. As an investor, make sure you take the required precautions before investing your money through SIP:

Do not trust any middle-person blindly. Always consult an expert before making any investment as there are high chances of fraud in this field. At Target to Wealth, we promise you to keep you and your money safe and secure by employing the right techniques and further educating you about investing through SIPs.

Choose an investment in SIP wisely and select a plan that is risk-free and provide you with good returns. Never accept any luring offer since that might be some trap for you. With Target to Wealth around, you stay rest assured about investing the money in a legalised and well acceptable manner.

Finally, SIP is unquestionably an efficient investment option provided you have done your homework well and bestowed your trust in a reliable and experienced financial advisor to strategically plan it for you.

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