Systematic Investment Planning

How SIP's work

It’s simple. When it comes to creating long term wealth from equities, our biggest enemies are our own greed and fear. Either we fear volatility and sit on the side lines indefinitely as opportunities pass us by, or we jump in to invest after markets have gone up, succumbing to greed. Even the best, most seasoned investors in the world have fallen prey to their own behavioural pitfalls.

SIP’s put your equity investments on auto-pilot and take away the need to time the market (an impossible feat). It’s a well-known fact that predicting short term market movements is impossible, and trying to do so can make us miss out on market rallies or incur losses, eventually losing faith in the wealth creation potential of equities.

SIP’s also help us inculcate savings discipline, and maintain a healthy savings to surplus ratio, which is a key element of wealth creation from your regular savings. Using SIP’s, you can deploy a predetermined sum of money every month or quarter (just like an EMI, but in reverse) by issuing a standing instruction to the Asset Management Company to auto-debit your account on a fixed date. This takes away the need for you to time your investments, and puts you firmly in the driver’s seat on your journey to wealth creation from equities!