Investing doesn't have to be hard or scary. In fact, you can make it simple and easy. Just start a Systematic Investment Plan (SIP)
A SIP is the practice of investing a consistent rupee amount in the same mutual fund scheme at regular intervals (say each month) over a set period of time. What this leads to is good, old-fashioned common-sense: you end up buying more of a mutual fund scheme when the price is low, and buying less of the same mutual fund scheme when the price is high. At its core, a SIP is just a regular, automatic method of investing.
Markets tend to rise over time. This means that if you invest a lump sum earlier, it is likely to do better than smaller amounts invested over a period of time. Lump sum investing can result in better returns because the longer you have your money in the market, the better your returns are over the long run. Now, most of us don't have the luxury of receiving a huge lump sum of cash and earn it over time through employment, dividends, rent, etc. but it is something to consider the next time you receive a windfall.
Remember, a SIP is not a substitute for identifying good investments. If you spread your portfolio equally among 10 different investments and one of them collapses, then you'll lose 10%. But if you put all your money in that single investment that finally collapsed, you'd lose all your money even if you invested via a SIP. After all, if the scheme you identify turns out to be a bad pick, you will only be investing steadily into a losing scheme. A SIP in a diversified mutual fund scheme reduces some market risk but only after you've done identified sensible investments.
You can start your SIP at Clearfunds today with as little as Rs 5,000. Our innovative Flexi-SIP facility gives you total control on your savings. Just tell us how often you'd like to invest, and what you'd like to buy. We'll do the rest.