Yes, a millionaire! Certainly, your kids have the chance to become millionaires as they have a huge time advantage, compared to rest of us, when it comes to getting rich. It is an irony of life that you do not have money on hand to invest when you are as young as 20 years. And when you are 45 years old, you have money, but not enough time for your investments to reap benefits.
Time is the key for compounded growth to work magic! Your child exactly has that ‘time’ in hand. And you can invest for your little one to make him a millionaire! SIP is a way to go!
How Does SIP Help Getting Rich?
SIP is an investment method that helps to compound your wealth. Getting richer is a lot simpler if you have time in hand and you invest regularly. Here is how Systematic Investment Planning helps your child become rich.
Start With What You Can
Starting early with what you can is the first step to getting rich. When it comes to investing through SIPs, you do not have to wait to collect a huge amount to invest at once. They are affordable and these little investments help you achieve your long-term costly goals like child education, retirement and child marriage.
The beauty of investments through SIPs is that it has to compound effect on your little investments. As low as INR5,000 monthly investment, swells up to a huge corpus, in the long run. If the investor starts early, he can start with even lower monthly investments. The investor also has the option to increase the monthly investment amount at any time.
Below is an example that compares returns from child plan and SIP
Regular Investments Help
Investing a fixed amount regularly for a pre-determined time period helps. This is a more successful strategy that helps you beat overcome the market conditions. Even though you tide over the market’s ups and downs, you may not end up with losses. Thus, returns from SIP investments are comparatively unaffected with the market’s volatility. Is it not the best way to getting rich!
Easy to Invest
Unlike your household bill payments, your SIP amount can be automatically debited from your bank account on the predetermined date. It can be achieved through Electronic Clearing Service (ECS) facility, thereby not disturbing a fixed amount every month.
In conclusion, the best part of SIP investment is that it is designed to beat the lows and highs of the market in long run. Thus, it offers stability to the invested amount. Use online financial advisory services from ArthaYantra to build your personalized plan. Start your financial planning now to reap golden benefits for child’s future.