Women make more systematic decisions - Research says! Encourage the woman in your life to start investing!
Various studies say:
Women are more risk-averse than men and also evaluate risk better than men in many cases. They adopt a more conservative strategy compared to men and tend to trade less frequently. Women are more likely to admit that they have no knowledge of an investment compared to men, which makes them take realistic and informed decisions. They make checks and discuss about an investment, be it SIP, Systematic Investment Plan, or general trading, before they invest. They take more time and evidence and information to be convinced of investment decision.
Hedge funds run by women have consistently outperformed those that were run by men for the period between 2007 and mid-2013. In Indian households, women making family investment & financial decisions can help the family be financially secure and ready for any unexpected or expected spending requirements.
What is SIP? Think of it as a piggy bank that gives you access to disciplined investment in mutual funds. Systematic Investment Plans, called SIPs, help you create wealth over the long term through small and periodic investments. By making small, disciplined savings in mutual fund schemes over a period of time, these plans bring you closer to realising your financial goals, life goals. In other words, an SIP is a vehicle or approach to invest a fixed amount in any fund or scheme or product at regular intervals.
Systematic Investing means -
Investing a fixed amount
Investing for a continuous period
Investing at regular intervals
A Systematic Investment Plan offers a great number of advantages.
You can start small, with investments as low as Rs. 500 per month.
With participation across market swings, it reduces the risk of ‘timing the market’.
Rupee Cost Averaging
It is a disciplined way of saving.
It puts the power of compounding to work for you.
Systematic Investment Plan
SIP stands for Systematic Investment Plan. It is a Mutual Fund industry tool that encourages regular and disciplined investing without causing disruptions to your monthly budget. Here are a few plus points of doing an SIP:
- Convenience - SIP is a convenient method that can help create wealth. Using this tool, you can invest as little as Rs. 500 on a monthly or quarterly basis. It does not disrupt your household budget.
- Flexibility - You also have the flexibility of choosing your investment amount. The only rule - the investment amount should be in multiples of 500, i.e. when investing, you can invest Rs. 500, Rs. 1000, Rs. 1500, Rs. 2000 and so on. This style of investing turns dreamers into disciplined investors.
- The Power of Compounding - The rule for compounding is simple - the sooner you start investing, the more time your money has to grow.
- Rupee Cost Averaging - SIP uses Rupee Cost Averaging. Here, the number of units acquired per month varies based on market fluctuations. So, if the market is down you get more units and if the market is up you get less. This minimises the effect of market volatility on your investments.
To summarise, let us all understand one thing — we will all get old, and though our lives will be longer and healthier than any previous generation, the really long retirement time period will pose great many challenges. Good thing is, just like with any other dilemma in life, a systematic and disciplined approach (SIP) is available in the investment landscape that can help you sail smoothly through your retirement years.
Once you have a list of your goals and a date by when you want to achieve them, you have to ask yourself - are you on track to achieve each of them?
Yes! Maybe? No!
If your answer was ‘Yes’. Congratulations!
If your answer was ‘Maybe’ or ‘No’, do not worry, you can get back on track using our SIP calculators here