Why should I invest through a SIP?

Modified on Wed, 15 Sep 2021 at 03:37 PM

A Systematic Investment Plan is one of the easiest ways to invest your money. Not only it makes you a disciplined investor, because the money is automatically deducted from your bank account and invested in the funds of your choice every month, but it also has a lot of other benefits. The key benefits of SIP are listed below:

  • Power of compounding: Small, regular investments lead to large accumulation of wealth over time hence harnessing the power of compounding.


  • Rupee cost averaging: SIP ensures you invest at every market level hence saving you from the biggest mistake that every investor makes – buying high selling low. This combined with the power of compounding works wonders to your portfolio.

  • Small Pocket Investment: You can invest in a diversified portfolio of stocks with as low as Rs 500 per month through the SIP mode.

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