SIP – An Intelligent Way to Build Long-Term Wealth

 

We often tend to think that piling up money in our lockers and bank accounts is the best way to build wealth. Well, that is not true in today’s fast-growing economy. Wealth is created by multiplying the savings by investing the amount in the smartest way possible. You may now wonder how can you do so? Do I have to keep tracks of my investments regularly?

 

Target to Wealth provides you with all the above answers and more with just one click. Target to Wealth believes in educating people about smart investment procedures, offers advice and support in decision making. It is a start-up established to blow-out attentiveness regarding investments and make investment options available to those people who belong to the rural areas of the country.

 

What is SIP?

 

SIP is Systematic Investment Plans that are offered under mutual fund schemes. SIP is a process of investing a pre-determined amount of money at regular intervals in the selected scheme for a period of time. SIP uses the power of cost averaging and cost compounding which benefits the customer by having a lump sum amount at the end of the investment period. It is an ideal investment for those who are often afraid of scrutinizing the ups and downs in a market. SIP takes this responsibility on its own and

offers you a disciplined way of investing at a constant period of time.

 

How to Build Wealth through SIP?

 

  1. Start early – For any successful investment to grow, you have to give it some time and sit back while it flourishes. If you are a beginner or are investing a small amount in the SIP, you should start investing as early as you can as the more time your money remains invested, the more return you can possibly have after a long time.

 

  1. Discipline – Once you have invested in a SIP, never skip any instalments that are yet to come. Plan your whole budget keeping in mind your monthly SIP amount. Discipline is the key to build wealth.

 

  1. High returns – Plan your SIP in equities that provide higher returns. It is not really wealth building if you are getting negligible amount after a period of 25 years. So, avoid investing in liquid funds and look for high return equity funds.

 

  1. Growth Plans – Always opt for growth plans and avoid taking up the dividend plans as that will transfer the dividend back to your account and will be making no contribution to your wealth creation.

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