Preparing for smooth retirement: How SIPs can help

Retirement is the time to finally take it easy, isn't it? We want to dedicate our golden years to travelling, spending time with grandkids, and pursuing our hobbies and wish lists without any financial worries. Inflation, rising health costs, no pension or inadequate provident funds could be a cause of concern. 

So it's important to plan to build for the future on our current flow of income and savings early on, in a regular and disciplined manner. One way which can help to achieve this is through systematic investment plans or SIPs in mutual fund schemes. Here is why you can consider it.

• Firstly, mutual fund scheme investments can be an easy, hassle-free, and professionally managed avenue by which you can invest in various asset classes as per your risk appetite, with the aim of long-term wealth creation. 
• One unique feature of investment in mutual fund schemes is SIPs which allow you to invest small amounts into the mutual fund scheme of your choice at regular intervals. Almost anybody can do it, as the minimum amount can be as low as Rs 100. 
• The amount can be decided based on one's risk appetite and investment objective. 
• SIP amounts can be automatically debited from investor accounts as per authorised mandates, promoting a disciplined investment approach. Investors don't have to worry about missing the SIP due dates and only have to ensure they have the required balance in their accounts. 
• SIPs can help in rupee cost averaging. 
• SIPs offer flexibility, as you can change the amount at your convenience. You can also start and stop SIPs whenever you wish. 
• SIPs work on the principle of compounding, so the longer the duration of the SIPs, it may aid in meeting the financial goals. So, the earlier you start, the better.

So, if you are looking for a way to build a corpus to truly make your retirement your golden years without a load on your pockets today, then you can consider opting for SIPs in mutual fund schemes. 

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This material is not intended for distribution to or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. The distribution of this document in certain jurisdictions may be restricted or totally prohibited, and accordingly, persons who come into possession of this document are required to inform themselves about and observe any such restrictions. Investors may consult their financial advisor and/or tax advisor before making any investment decision. Investors may make any decision/ investment decision after necessary due diligence, understanding the risk appetite and as per the financial objectives. SIP investments do not guarantee any profit/loss in an upward/declining market. Kotak Mahindra Asset Management Company Limited/Kotak Mahindra Mutual Fund is not guaranteeing any returns/future performances.

Mutual Fund investments are subject to market risks; read all scheme-related documents carefully.