What is SIP? SIP Calculator, Full Form & Investment Plan

What is SIP and what is the best investment plan? How to calculate what is SIP calculator. SIP stands for Systematic Investment Plan. There is no such person in today’s generation who does not invest money for their future. All people deposit money in some way or the other for their future.

SIP Calculator. Types of Systematic Investment Plan, and Benefits or advantages. SIP full form and how to invest.

There are many types of people living in the world and all people do different types of work. Like if someone does business, then someone does a job, in this way all people do different work. But all the people have the same instruction that how to earn money. In today’s generation, everyone wants to fulfill their needs. so every person is busy earning money in some way or the other.

There are some people among all of you who invest their savings money somewhere. So that they can get a profit from their invested money. But if all of you are not aware of mutual funds and the share market. then SIP is a good option for you. In SIP, you do not have to invest money all at once, but you can invest a little money. Due to this, you will not even know and after a few years. you will have a lot of money deposited with you.

You do not have to pay income tax for the money you invest in it. That’s why people of medium households invest in a Systematic Investment Plan. There are also many people who feel that there is fraud in the Systematic Investment Plan. But you can invest money in this without any fear because it is not a fraud. Now we know what is SIP and how to invest money in it. we will know about it in full detail.

What is SIP?

SIP means Systematic Investment Plan. You all must have heard about SIP that drop by drop fills the pitcher. Similarly, you can invest little money in SIP. If you do not have lakhs of rupees to invest in. then what if you can invest in it with 500 rupees. The advantage of investing in this is that you do not have to pay tax on it. And if you do not have knowledge about mutual funds and the share market, then you can invest in SIP.

If you make a big investment in the stock market or mutual fund. then you can also suffer loss in it. But if you invest with its help, then you have more chances of profit. Because in SIP you do not have to invest a large amount at once. in this, you can deposit a small amount. This does not unnecessarily affect the economic condition of the person. If you make small investments in this way for a long time. then after years, you will have big cash accumulated.

Now let’s understand it in more simple words. For example, suppose you have a cash amount of Rs 1 lakh and you want to invest it. If you invest it in the share market in this mutual fund. then you invest a large amount of money together. And if the share price falls, then you can suffer a big loss.

if you invest in SIP, then you get 100% profit from it. Because in this you do not have to invest money at once. Rather, you have to deposit a little money monthly in this. You can invest weekly, monthly, or yearly in SIP. You can start investing in this with as little as Rs 500.

Full-Form of SIP

If you all do not know what is the full form of SIP. So now we know what is the full form of SIP.

The full form of SIP is a “Systematic Investment Plan“.

Benefits/Advantages of SIP

Now we know what are the benefits of SIP. Many people are afraid to invest in it, they should be aware of its benefits or advantages. If you do not know about the benefits of a Systematic Investment Plan. So now we know in very simple language about its benefits.

1. Stop the SIP Anytime

If you invest in a Systematic Investment Plan. And for some reason, you have to stop the Systematic Investment Plan. So you can also stop investing in it, for this, you do not get any charge. And if you want, you can take that money back. If you do not want to withdraw the money, then you can invest the investment money in mutual funds. If you do not withdraw the money invested in the Systematic Investment Plan. So in that, you get charged recurring deposits (RD).

2. Withdraw Money From SIP

If you want to withdraw money from it, then a lock-in period is not given in most of the schemes for that. Which you can withdraw payment from. If you have invested in it for five years and you need pesos in two years. So you can withdraw payment from the Systematic Investment Plan even in two years. This is its very good benefit, so most of the people like to invest in it.

3. SIP Tax Exemption

If you invest in SIP, then you do not get tax on the money invested in it. If you want to save tax on the money invested in it. So for that, you need to invest at least three years in it. You do not have to pay tax while investing in a Systematic Investment Plan and while withdrawing payment.

4. SIP Ease of Investing

It is very easy to invest in a SIP. If you want to invest in this, then for that you have to select the plan. After that, withdraw the amount from your account and deposit it in your chosen plan. Now we understand this in easy language if you have chosen a monthly investment of two thousand rupees in this. So in the month, withdraw the amount from your account and deposit it in your chosen plan.

5. SIP Small Investment

You can also invest in SIP with a small amount. It is not necessary that you need lakhs of rupees to invest in this. As you have learned above in this post. You have to invest only a fixed amount in it at certain intervals. You can start investing in SIP from Rs.500. If you invest in a fixed interval, then you can get a huge amount in it after a few years.

6. SIP Risk is Very low

The biggest advantage of SIP is that your money is safe in it. If you invest in a share market or mutual fund, then the risk is high in it. If you invest one lakh rupees in a mutual fund together. So that, you have fewer chances of profit and more chances of loss. If you invest these pesos in a Systematic Investment Plan at different intervals. You can deposit those pesos in it every month at the rate of ten thousand rupees for ten months. With this, you can invest money without risk and can also earn good profits.

7. Systematic and Disciplined Investing

If you invest in a Systematic Investment Plan. So its best advantage is that all the work in this is Systematic and Disciplined. And this discipline encourages you to save. The more people of today’s generation earn, the more they spend. In such a situation, they have a problem in saving money. By investing in this, every month money goes out of your account and goes to investment.

8. Advantages of Compounding

If you are investing in SIP then you should give a Monthly Systematic Investment Plan. The word compounding means to get interested on interest also. You get a return for the monthly investment you make in it. And that money is re-invested back into the same. Due to this your profit increases and after the completion of the Systematic Investment Plan, you get a good amount.

SIP Calculator – Systematic Investment Plan

Now we know what is Systematic Investment Plan calculator. In this, you will help to calculate the returns of the investment. With this, you can know how much profit you will get from investing for how long. If you want to invest in SIP (Systematic Investment Plan), then you can know investment information with its help.

Now we understand the SIP calculator in simple language. If you invest in a Systematic Investment Plan, then you can easily calculate about investment in it. In this, you can know the profit about the investment according to the year. If you invest 500 rupees every month, then how much money will be deposited in your five years. And how much return do you get from the investment in the next five years? You can know all this information from the SIP calculator.

SIP Calculator

Types of SIP [Systematic Investment Plan]

Now we know how many types of SIP (Systematic Investment Plan) are there. If you want to invest in a Systematic Investment Plan. So for that, you have to select a Systematic Investment Plan. Because it is of many types but we will know about some important types.

  • Top-up SIP: You can also increase your investment in top-up SIP. For example, if you have started investing with Rs 500 and you want to increase the investment amount. So you can increase your investment amount with its help.
  • Flexible SIP: Flexible SIP As its name suggests, it is a very Flexible Systematic Investment Plan. You can increase or decrease the amount of your investment in this.
  • Perpetual SIP: In Perpetual SIP, you can choose the tenure of your SIP. In this, you can select a time interval on the basis of weekly, monthly, or yearly. Normally the SIP stops after a period. But there is no period of any kind in Perpetual. And you can withdraw money from it anytime.
  • Multi SIP: In multi-SIP, you can invest in multiple schemes from the same fund house. This is a great way to easily build a diversified portfolio.
  • SIP with Insurance: If you invest in it for long term. So the company provides you insurance cover. The initial cover for the insurance is usually ten times the first SIP amount. This feature is available only for Equity Mutual Funds.
  • Regular SIP: You can invest in this very easily. In this, the investor invests a fixed amount at regular intervals. That time interval can be weekly, monthly or yearly.
  • Trigger SIP: Trigger SIP is only for those people who know the dynamics of the market very well. In this type of plan you need to know about the buying and selling position.

How to Invest in SIP

If you want to invest in SIP, then first of all you should know about it. If you do not know about it, then first you get information about it. Because before investing in anything it is good to know complete information about it. In this post, we have learned about what is SIP.

Before investing in a Systematic Investment Plan, you have to decide how much money you want to invest. Because whatever money you invest, you have to deposit that much money every month. After that, you have to select for how many years you want to invest the money. And in how many intervals weekly, monthly or yearly you have to deposit money.

You will need some documents to invest in it. For example, PAN card, bank passbook, linked cheque, address proof, etc. are required. It is mandatory to get KYC done to invest in Mutual Funds. After getting KYC done, you have to go to the website of the fund house and after that, you can choose the SIP of your choice.

If you do not already have an account in it, then click on “Register Now”. After that, a form will open in front of you, in which you have to fill in all the details. After that, you have to select the username and password for the online transaction. Now you have to fill in the details of your bank so that your SIP can be withdrawn from the bank every month. After that, you have to log in, to log in you have to enter a username and password. After completion of your registration, you will get confirmation from the fund house. Now you can start investing in SIP.

Other Information for Investing Money

Mutual Fund: Benefits, Types & How to Invest in Mutual Funds

Share Market: How to Invest in Share Market [Full Guide]

Open Free Demat Account Online & Offline, Benefits, Types

Trading Account: Demat Account vs Trading Account, Benefits

Zerodha: Kite Zerodha Login, Open Demat & Trading Account

Stock Market: Stock Market Today, Live, Types & Exchange

Last Word

I sincerely hope that all of you must have liked today’s article SIP. In today’s post, we have known what is the full form of SIP and what are its benefits. Apart from this, how to invest in a Systematic Investment Plan and what is the Systematic Investment Plan calculator. Got information about this in many languages.

How did you all like today’s post, do tell by commenting. If you have any doubt about this post then you can ask by commenting. Our team Prokeeda will clear all your doubts. Those who do not want to do mutual fund and share market, tell them about Systematic Investment Plan.

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