SIP Benefits: If you want to invest in SIP, know the 5 big benefits associated with it..

SIP is considered to be the easiest way to invest in mutual funds. Through this, you can invest money in installments. In mutual funds, the portfolio is prepared by the agent. Therefore, the risk is less in this.

Apart from this, the option of hybrid and debt funds is also available in mutual funds. You can also reduce the risk by investing in this.

5 big benefits related to SIP

1. Flexibility

You get many types of flexibility in SIP. You can choose the period according to you. At the same time, the investment amount can be increased. Apart from this, if any economic disaster comes, then you can also pause the SIP in between.

2. Benefit of compounding

Investing in SIP also gives the benefit of compounding. Therefore, only if you are investing money for a long time, then you get the benefit of SIP. The longer you invest, the more you will benefit from compounding.

3. No limit on investment

You can invest as much as you want in SIP. There is no limit on investment in it. However, keep in mind that there should be diversification in the portfolio. Which means that you should invest in different asset classes. So that you are not affected so much by the fluctuations in the stock market.

4. ELSS saves tax worth lakhs of rupees

If you invest in ELSS i.e. Equity Linked Savings Scheme, then you also get tax exemption. At the same time, more returns are obtained from safe investments. However, the return received in this depends on the fluctuations of the market.

5. Start investing from Rs 250

You can start an SIP mutual fund with just Rs 250. At the same time, this limit can also be increased whenever you want. There is no limit on maximum investment in this.

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