SIP – A Powerful Tool Which Helps Compounding Your Wealth Over Long Term

Don't start just one SIP. Split the money and start 3 or 4. This gives an investor two advantages (i) They gets the benefit of investing in more than one fund, and (ii) it gives them the flexibility to stop one in case more money is needed for monthly expenses.

Start SIPs on different days of the month or do a daily STP (Systematic Transfer Plan). This offsets the effect of fluctuations during a month.

While choosing the Mutual Funds make sure they offer different investment strategies. This broad-bases the portfolio and reduces risk.

Most importantly, start your SIPs without any delay. That's the surest way to get the power of compounding to work for you!