Nowadays, earning money from a primary source of income is not enough. This is because it might not be enough to lead the life one always dreams of. So, this is when investments and savings play an essential role in one’s life, helping one build their empire at just the right time. Always remember that idle money in the bank account or even locker is a lost growth opportunity.
It is essential to invest money smartly in order to earn fruitful returns, and one of the best ways to do so is to invest in a SIP (Systematic Investment Plan). Recently, when I got to know that the SIP interest rate is quite perfect for investing, I made a wise choice at that moment.
What is SIP?
SIP is an investment scheme where regular fixed amounts are invested in your preferred Mutual Fund scheme. In this investment, a fixed monthly amount is deducted from your savings.
Moreover, as the term indicates, it is a systematic method of periodically investing fixed amounts of money. This can be monthly, quarterly or even semi-annually etc.
(Tip: Always use a SIP Interest Calculator before investing.)
What are the benefits of a SIP?
From providing higher returns to acting as emergency funds, a SIP offers various kinds of benefits.
● Higher Returns
Compared to traditional investment methods such as fixed or recurring deposits, a SIP provides double the returns as SIP interest rates are quite impressive. This also helps the investor to beat the inflated costs.
● Emergency fund
It is an open-ended fund without a fixed tenure, so that one can withdraw it as a contingent fund. This definitely helps during tough and emergency times.
SIP offers tremendous flexibility as they are open-ended funds that can be withdrawn as per your choice, meaning they do not have a fixed tenure. So, you can withdraw either the full or partial amount from your investment without incurring any losses.
With SIP, one can start the investment with as small as Rs 500 each month and watch it grow exponentially. Also, a SIP is so flexible that one can easily increase or decrease the invested amount.
What is a SIP Interest Calculator?
It is basically a tool that allows one to get an idea of the SIP investment returns. These calculators, readily available on various applications on a smartphone, help one experiment and gives an estimated return on investments.
It basically calculates the wealth gain and expected returns for the monthly SIP investment. Therefore, based on a projected annual return rate, one gets a rough estimate of the maturity amount.
Now, personally speaking, I use the ‘Bajaj Finserv: UPI, Pay, Loans’ on my smartphone, which offers various calculators, including this one. Of course, as I mentioned above, there are other applications, too, but this one works very efficiently, so it is highly recommended.
Moreover, one can also invest in SIP on this application because, compared to what is offered in the market, it gives the best SIP interest rate.
(Note: This content is not promotional. Readers are free to use any application.)