Vivek Financial Services

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SYSTEMATIC INVESTMENT PLAN

All of us have dreams. Some big, some not so big. Be it having a house of your own or providing the best education for your children or taking that dream holiday. You can actually fulfil them by investing small amounts regularly. The secret to its success is to start early and continue religiously. As you know time is money. The earlier you start making your money work for you, the better it is for you.

Save Regularly

Systematic Investment Plan helps you make your money work harder for you. Through SIP, you can invest small amounts of money at regular intervals that will ultimately add up to a lot in the long term.

The benefits of using the SIP are threefold:

It disciplines you to save regularly rather than randomly.
It brings down the average cost per unit.
It helps reduce the risk of timing the markets.

Here's how it works

Let us suppose there are two friends Ajay and Vijay. Ajay, on one hand, has saved Rs. 2000 a month for 20 years from the age of 24 in an investment instruments that generates a hypothetical return of 11 % per annum. After 20 years of investing, he ceases to invest. Vijay, on the other hand, starts saving Rs. 5000 per month from the age of 40 for 20 years. Who do you think would have earned more ? If you think it is Vijay, then you are mistaken ! For while Vijay's investments would have made Rs. 43.76 lakhs at the age of 60, Ajay's systematic and regular investments would have made Rs. 1.01 crore at the age of 60 !! Its time in the market & not timing the market that matters on your earnings or returns. SIP is a great instrument to help you create wealth. And the best way to avail of it is by investing in an Equity Growth Plan. A well-diversified equity fund, the Growth Plan is ideal if you are looking for the possibility of long term returns and are not too averse to the fluctuations of the stock market.

Quote Of The Day

" It is never your thinking that creates wealth, It is sitting."

- Anonymous
" Too much portfolio churning is injurious to your wealth"

- Anonymous
" I have never met a man who can forecast the market"

- Anonymous
" Stocks are slaves of earning power"

- Anonymous
" If we shopped the way we shop for socks, we would be better off"

- Anonymous
" Buying a share means buying the earnings power of companies"

- Anonymous
" Investing should be more like watching paint dry or watching grass grow. If you want excitement, go to Las Vegas"

- Paul Samuelson
" The stock market is filled with individuals who know the price of everything, but value of nothing"

- Phillip Fisher
" How many millionaires do you know who have become wealthy by investing in savings account"

- Robert G. Allen
" Wide diversification is only required when investors do not understand what they are doing"

- Warren Buffett
" The big money is not in the buying and selling, but in the waiting"

- Charlie Munger
" I don't want a lot of good investments; I want a few outstanding ones"

- Jhon Neff
" In the short run the market is a voting machine, in the long run, it is weight machine"

- Benjamin Graham
" Never invest emergency savings in the stock market"

- Suze Orman
" If you're not willing to hold a stock for 10 years, dont think of owning it for 10 minutes."

- Warren Buffett
" In the stock market, a good nervous system is more important than a good head"

- Warren Buffett
" In investing, what is comfortable is rarely profitable."

- Robert Arnott
" Short term thinking is the enemy of long term investment success"

- Anonymous
" If you want to own a stocks for long term, monitoring fluctuations is a very, very bad idea"

- Anonymous
" In evaluating a stock, the management is 90%, industry is 9% and all other factor is 1%"

- Phillip Fisher
" In the stock market, money is moved from active to patient investors."

- Anonymous
" Gentlemen who prefer bonds don't know what they are missing"

- Peter Lynch
" If you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks."

- John Bogle
" More money has been lost trying to anticipate and protect from corrections than actually in them"

- Peter Lynch
" It is never your thinking that creates wealth, It is sitting."

" I work hard, I make my own living and I love it. I like having financial independence."

- Salma Hayek
" If a child, a spouse, a life partner, or a parent depends on you and your income, you need life insurance."

- Suze Orman
"Building wealth is a process of managing risk, not ignoring it."

- Jon Duncan