Investors prefer SIPs, here's why

You’ve probably heard the phrase “Mutual Fund Sahi Hai”, and have wondered whether you should start your own investment in Mutual Funds through a SIP.

If the current pandemic has taught us anything, it is that there is nothing worse than being unprepared. Investors now realize that it is imperative to save and grow their hard earned money.

A SIP allows you to invest a fixed amount regularly in a Mutual Funds scheme. The timing of starting a SIP, especially one planned for a longer period mitigates the risk of short term market fluctuation on investments.

Here are just some of the benefits:

	Low Minimum Investment: You can start your investment with as low as Rs. 500/- in a SIP (Systematic Investment Plan) or even as low as Rs.100 in a Quantum Mutual Fund SIP.
	Brings discipline: You can choose your SIP investment cycle; be it daily, weekly, monthly or quarterly. This brings financial discipline to your investment and savings for your future goals.
	Avoid timing markets: Once you invest through Mutual Funds, you can leave it to the fund managers to make the desired changes to the scheme portfolio. You don’t need to time the markets and decide where to invest.
	Achieve goals: A Systematic Investment Plan (SIP) will help you make the most of the compounding effect. You can achieve your financial goals like wealth creation, child's marriage or retirement.
	Power of compounding: Your investment will generate earnings from the principal amount invested and also the subsequent returns earned over the period. Make the most of compounding to achieve long term goals.
	Rupee cost averaging: A SIP buys more units when the market is low and less when market is high, bringing down your average cost per unit. This enables you to mitigate the risk of short term market fluctuations and as a result gain more over the long term.
	Diversification: Mutual funds brings you the advantage of diversification by combining different assets such as equity, stocks or bonds or gold.

SIPs an investment for the long term:

Start building your wealth to match your investment goal: buying a 2 wheeler, funding your child’s education or planning for retirement. The table below shows the effect of compounding with just a monthly SIP of Rs. 1000 at an assumed rate of return of 12%.

Note: The table above is for illustration purposes only. Investments through SIP is subject to market risk and does not assure a profit or returns or protection against a loss in downturn market

As you can see, the longer the term, the better you can leverage the power of compounding and safeguard against the risks of short term volatility and inflation.

Start your SIP today to dream big for your future

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

Mutual fund investments are subject to market risks read all scheme related documents carefully.

Please visit – www.QuantumAMC.com to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.

Above article is authored by Quantum.

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