How much SIPs or Systematic Investment Plan can change one’s life?

Web Journalism course

Parag K. Investments are very essential to run smoothly in life especially to fulfill our life time goals.To achieve the permanent targets such as buying a home, car, child or children’s education, marriage and retirement life, one needs to plan accordingly.

The best way to save money despite high inflation is to invest one’s hard earned money in Mutual Funds via SIPs. It has emerged as the most significant investment mode for retail investors over the past few years and helped domestic mutual funds gain heft in the local equity market.

SIP contribution rose to Rs.92,963 crore i 2018-2019 from Rs. 43,921 crore in 2016-2017, according to the Association of  Mutual funds in India. The number of SIP accounts rose to more than 30 million in December 2019. Leaving a few instances of net 0utflows, inflows have been positive every month.

Thanks to the increasing preference for SIPs, the share of equity in total household assets increased to 4.6% in 2018-2019, the highest since 2008. After dropping to 2.2% in 2014, it has been on the rise then.