• No need to Time the market
  
  Waiting for the right time to invest in the market could be a time-consuming and risky task. Through SIP you need not time the market,as you make regular investments at predetermined intervals.This spares you from investing a lump sum amountat peak prices.
  
  These disciplined and regular investments could stop you from worrying about when and how much to invest.



• Power of compounding
  
  Systematic investing has a compounding effect on your investments. In the long term, an investment as low as Rs. 1,000/- per month can grow up into a significant amount.
  This can be best explained by the following graph.The graph shows the value of investment at various rates of return for Rs. 1,000/- invested every month for 30 years.

Source: Internal. The above is for illustration purpose only.

Source: Internal. The above is for illustration purpose only.

An individual who starts planning for his retirement at 25 years of age by investing a modest Rs. 1,000 per month may collect upto Rs. 37 Lakh on retirement (60Yrs.) whereas his investment over the period could just be Rs. 4.2 Lakh.

Through systematic investing, you buy more units when the prices are low and fewer units when the prices are high. This results in averaging of cost per unit.

The example in the table below will explain this concept.

Assume that you invest Rs. 1,000 on a monthly basis for 4 months using a SIP. The tables below show the cost of investment of the same value but done at one-time as compared to the investment done through SIP route.

The above is for illustration purpose only and should not be considered as an investment advise.
As illustrated in this example, using SIP averages out the cost per unit, which may result in wealth creation over time.