Learn how smart SIPs can help secure your family's financial future and meet long-term goals.
With smart SIPs, you can meet all the future expenses and fulfil your financial goals, such as sending your child to a good college, creating a retirement fund, or dealing with an unforeseen financial challenge. In this article, we will understand what smart SIPs are and how they can help you secure your family’s financial future.
An SIP allows for investment of a certain amount paid periodically in mutual fund schemes. The investment process helps you develop financial discipline and build wealth over time. Benefits include rupee-cost averaging wherein you buy relatively more units at lower prices and fewer when the prices are high, on an average.
A smart SIP takes the traditional SIP concept one step further with higher flexibility and higher returns. The investment amounts and frequency are automatically adjusted according to the market situation, thus making it possible for investors to always achieve maximum gains.
In smart SIP, funds are allocated dynamically between equity and liquid schemes based on market conditions. When the market is in favour, more money is invested in equities, and during volatility, funds are shifted to safer liquid schemes. Thus, the returns are optimised with reduced risks.
Smart SIPs allow you to choose for a minimum, maximum, or even some default installment amount, so you get to have control over the investment contributions coming from you. You can always adjust it, though, according to your financial crisis, so that the investments go on with your financial objectives.
Smart SIPs generally offer capital appreciation rather than periodic dividend distributions. This in turn means instead of getting regular dividends, the corpus for your family will be growing over time.
Smart SIPs can be combined with Systematic Transfer Plans (STPs), wherein you can transfer investments from one scheme to the other within the same fund house. That means you can shift from an equity scheme to a liquid scheme or vice versa depending upon the market conditions so that you manage risk as well as optimise returns.
The smart SIPs, at times, even enable you to have a life cover along with your insurance. This way, your family remains protected.
Smart SIPs offer numerous benefits, some of which are as follows:
A smart SIP is the best strategic and efficient way to secure your family's financial future. It works as a comprehensive way to save up for several future goals - saving for your child's education, building a retirement corpus, or preparing for any other long-term objectives. Smart SIPs offer wealth creation avenues and ensure financial security for your family.
The Bajaj Finserv Mutual Fund Platform has over 1,000 mutual funds that you may use a mutual fund calculator to compare mutual funds, and choose what is best suited as per your goals. Taking into account your risk appetite, it helps make investing in mutual funds easier.
In a smart SIP, the amount invested and the frequency for investments are adjusted in accordance with prevailing market conditions. A traditional SIP involves investment of a fixed sum of money at fixed intervals of time.
Yes, the smart SIPs give you the facility to customise the amount to be invested by you. It gives flexibility to adjust contributions considering your financial situations.
Yes, some schemes of smart SIPs provide the facility to include life insurance as well.
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