Any investor who can spare at least 500 rupees per month can benefit from the Systematic Investment Plan. SIP Plans are available from some funds for as little as 100 rupees. However, the majority of funds require a minimum monthly contribution of 500 rupees. The majority of people believe that large amounts of money are needed to invest. However, beginning from as little as 500 rupees per month can build up a significant amount of wealth over time. People do have many aspirations or ambitions, such as a better education for their children, an international holiday, a dream home, or a happy retirement. However, most people with minimal resources do not know how to achieve their objectives. Check Investment Planning.
The benefits of a systematic investment plan are not limited to low investment amounts. We all know that timing market peaks and lows is nearly impossible. Most people risk money investing in stocks because they try to time the market rather than invest for the long term. Also, the most experienced investors and traders are prone to making mistakes when it comes to market direction. For a layperson or investor with limited time and money to study market movements, the benefit of a Systematic Investment Plan is unrivalled. With rupee cost averaging, you can invest in equities on a regular basis without having to think about timing market peaks and lows. Rupee cost averaging aids in the accumulation of wealth over time, which is a benefit of Systematic investment planning.
If there is a price drop, investors usually keep averaging the same number of shares/units, but never when the price is increasing. In the long term, if no new investments are made, this may be a missed opportunity. SIP-based rupee cost averaging works regardless of market highs and lows. While the market is declining, more units are accumulated, and when the market is rising, less units are accumulated.