Is it true that More Time assures More Money?

In spite of the fact that cash – or the deficiency in that department – is frequently referred to as a standout amongst the most pressure initiating parts of life, another examination has discovered that the individuals who esteem time over cash are for the most part more joyful contrasted with the individuals who might rather store up more riches.


The SIP Way


But how about following the way where you get the perfect blend of both. Ideally this should be one’s and everyone’s ultimate aim. With Target to Wealth on the go, you would be guided to gain the maximum advantages out of the safest bets available in the market like the SIPs. SIP is a common term known to both amateur as well as experienced investors.


Systematic Investment Plans assures safe returns for the risk averts however what remains to be a puzzling issue is More Time = More Wealth. Is it really true? Is SIP the right way? Does investing in SIPs guarantee assured returns?


Let us try and simplify it for you:


SIP Returns over Time


It is an accepted fact that SIPs are a simple and hassle free way of investment. What makes it a lucrative deal are the underlying principles i.e. power of compounding and rupee cost averaging. These two suffice the need for investing money for certain period of time with assured returns. However below is an illustration that suggests what you can gain over a period of time by investing in SIPs:


SIP Plans Type        3 Year          5 Year
HDFC Small Cap Fund Equity Fund Name            21.52%             24.31%
DSP BlackRock Midcap Fund Equity Fund Name             16.77%            25.68%
ICICI Prudential Equity & Debt Fund Equity Fund Name            11.11%            17.48%
HDFC Balanced Balanced Fund Name            10.65%            18.96%
L & T India Prudence Fund Balanced Fund Name           10.03%            18.36%
Birla SL Balanced ’95 Fund Balanced Fund Name             9.42%            16.83%
SBI Magnum Gilt Short Term Debt Fund Name             9.10%             17.27%
Aditya Birla Sun Life Medium Term Plan Debt Fund Name             8.39%              9.13%
Reliance Credit Risk Fund Debt Fund Name            7.87%              8.33%


Pretty visible from the above table that more time does mean more money however while we talk about the rupee cost averaging aspect of SIPs, things take a different turn altogether wherein it all relies on averaging out the cost, basis change in the price. This further means that making variable purchases from time to time at different rates help you average out the cost within a lesser time span.


Final words


So what’s the takeaway here? Understanding and investing in the right SIPs through an expert financial advisor not only assists you in maximizing your wealth but also directs you to take steps to attain your future financial goals. All things considered, it’s apparently considerably simpler to control your extra time than it is your ledger. Therefore, it is time to allow Target to Wealth advisors to take control of your finances and help you with a smooth sail through across your investment journey.

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