Back4 reasons to start SIP with Bajaj Finserv Mutual Fund
Let's explore the many reasons why you should consider starting your SIP journey for financial success
PremiumWhen it comes to achieving financial stability and building wealth, it is essential to adopt a disciplined and strategic approach. One such method that has gained immense popularity among investors is the Systematic Investment Plan (SIP). SIP is an investment strategy that allows individuals to invest in mutual funds at regular intervals using pre-determined sums of money.
Moreover, to get an estimate of a suitable SIP amount and future value of your investment, you can use Bajaj Finserv Mutual Fund’s online SIP calculator. Here, we explore the many reasons why you should consider starting your SIP journey for financial success.
Why can you consider investing in SIP?
1. It’s easy to get started
Many individuals hesitate to step into the world of investments due to the perceived complexity of the process. However, starting an SIP investment is remarkably simple. With the help of distributors, numerous online platforms, banks, and fund houses facilitating SIP investments, you can initiate the process without much hassle.
2. Start with any amount
There's a popular misconception that you need a large sum of money to start investing. But with an SIP, you can begin your journey with as less as Rs. 500. This year, instead of spending all your bonus or extra earnings, consider channelling a portion into an SIP. Over time, even small monthly contributions can accumulate and grow significantly.
3. You don’t necessarily need any investment experience
For those new to investments, SIPs can serve as a good starting point. One doesn't require an extensive understanding of the stock market or financial instruments. Additionally, many fund houses offer advice to help beginners choose a suitable fund to invest in SIP.
4. There’s something for everyone
Mutual funds in India come in a vast array of categories, each designed to cater to various financial goals, investment horizons, and risk tolerances. As you look forward to starting your SIP investment journey, understanding the bouquet of options available can help you make an informed choice.
What are the different mutual fund options?
Equity mutual funds: These funds invest primarily in stocks of companies. The returns are linked to the stock market's performance. While they offer the potential for returns, they are also associated with higher risks. Equity funds are further classified into large-cap funds, mid-cap funds, small-cap funds, and sectoral funds. The newly launched Bajaj Finserv Flexi Cap Fund can be a good starting point for a long term investment in equities.
Debt mutual funds: These funds invest in fixed income securities such as government bonds, corporate bonds, and treasury bills. Compared to equity funds, debt funds are less risky and suitable for investors eyeing potentially stable returns and low volatility compared to equity funds. You can consider investing in the newly launched Bajaj Finserv Liquid Fund after assessing your objectives and risk appetite.
Hybrid funds: As the name suggests, hybrid funds invest in a mix of equity and debt, aiming to balance the risk and reward. These funds are suitable for investors who want a taste of equities but with relative stability compared with pure equity funds. You can consider investing in Bajaj Finserv Arbitrage Fund if you wish to add hybrid funds to your portfolio.
Given this wide array of options, investors can match their SIP investments with their financial goals – whether it is buying a new home, funding higher education, planning a vacation, or building a retirement corpus.
Conclusion
By starting your SIP investment in mutual funds, you’re not just investing money, but building a prosperous future. The joy of gifting oneself financial stability and potential growth is unmatched.
FAQs
1. What should I keep in mind when starting an SIP?
When starting an SIP, consider your financial goals, risk tolerance, fund selection, and the long-term commitment required. Ensure that your investment aligns with your overall financial plan.
2. How can SIPs align with financial goals?
SIPs allow you to save and invest regularly. They provide a structured approach to achieve these financial goals.
About Bajaj Finserv Asset Management Ltd.
Bajaj Finserv Asset Management Limited, a wholly owned subsidiary of Bajaj Finserv Limited, has announced its presence in the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. This information does not constitute a financial advice.
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