SIP vs LUMPSUM क्या ज्यादा सही है? Power of COMPOUNDING Using SIP or LUMPSUM In Mutual Funds
SIP vs LUMPSUM क्या ज्यादा सही है? Power of COMPOUNDING Using SIP or LUMPSUM In Mutual Funds RichMindset ✅ Open New Demat Account to invest in Stocks & ETFs:- ✔ Groww App: https://app.groww.in/v3cO/zojukhy1 TICKERTAPE: https://www.tickertape.in/smallcase What is an SIP? How do SIPs work? How is the return generated through SIP? When we think about investing in stocks, shares, mutual funds, or index funds, we often wonder how to start investing as beginners. We also want to understand how the power of compounding works when we invest through SIP or lumpsum in the stock market. There are two methods of investing in stocks and mutual funds: SIP (systematic investment plan) and lumpsum investments. Individuals can choose to make a one-time lumpsum payment or invest regularly through a systematic investment plan (SIP), depending on various factors. Let's first understand what a SIP is. A SIP allows investors to regularly allocate a small amount of money to their chosen mutual fund scheme. It is a systematic way of investing fixed amounts of money at regular intervals, such as every month, quarter, or semi-annually. Once a SIP is activated, a fixed amount is automatically deducted from the investor's bank account every month. This makes it easier to achieve financial goals by consistently investing in this manner. Unlike lumpsum investments where the entire amount is invested at once, SIP spreads the investment over time. This means that individuals don't need a large amount of money to start investing in mutual funds through SIPs. This approach helps cultivate financial responsibility in the long run. On the other hand, lumpsum investments allow investors to deposit the entire available amount in one go to acquire a specific number of mutual fund units. This method is beneficial when the fund's net asset value (NAV) is low because a lower NAV allows investors to acquire more units. Conversely, a higher NAV reduces the number of units acquired. Now that we have a basic understanding of these investment methods, let's explore the difference between SIP and lumpsum. If you're wondering which one is better, the answer depends on individual preferences and goals. Both SIP and lumpsum investments have their own advantages. Understanding the differences between the two can help make an informed decision. The main difference lies in the cash flows. Lumpsum investments involve allocating funds once, while SIP involves investing regularly over time. Many individuals prefer SIP because it promotes financial discipline and harnesses the power of compounding for long-term financial freedom. When choosing the right investment method, individuals should consider factors like the type of fund, available funds, financial goals, and investment objectives. In conclusion, potential investors should carefully consider the points mentioned above in order to make an informed decision when choosing between SIP and lumpsum investments. Acess More & Quick Information On Our Social Media Handles: INSTAGRAM: / richmindsethindi_official FACEBOOK: / richmindsethindiofficial TELEGRAM: https://t.me/richmindsethindi Watch More Knowledgeable Videos: 1. How To Achieve Financial Freedom In India | Retire Before Age 30 | Rich Mindset: • How To Achieve Financial Freedom In I... 2. MUTUAL FUND vs INDEX FUND vs ETF vs STOCKS | Where To Invest Your 1st Lakh ? Rich Mindset: • MUTUAL FUND vs INDEX FUND vs ETF vs S... 3. Stock Market For Beginners | Share Trading For Beginners (पैसा कामना सीखो शेयर बाजार से) richmindset: • Stock Market For Beginners | How to E... 4. Power Of Compounding In Stock Market | Hindi |: • Power Of Compounding In Stock Market ... 5: Money Master the Game Audiobook | Hindi | Tony Robbins - 7 steps to financial freedom: • Money Master the Game Audiobook | Hin... #richmindset #richmindsethindi
