Benefits of Systematic Investment plans.

A systematic investment plan (SIP) is a plan in which investors make regular, equal payments into a fund, trading account, or retirement account such as a 401(k). SIPs allow investors to save regularly with a smaller amount of money while benefiting from the long-term advantages of dollar-cost averaging (DCA). By using a DCA strategy, an investor buys an investment using periodic equal transfers of funds to build wealth or a portfolio over time slowly.

  1. Power of compounding
    Compounding occurs when the returns you earn on your investments start earning returns. This is a simple concept in theory. But its practical implications are substantial.
    When you invest regularly through SIPs, your returns get reinvested. Over time, this result in a snowball-effect, that may increase your potential returns manifold. An ideal way to maximise this gain is to invest for an extended period. This also means you may benefit by investing as early as possible.
  2. Low initial investment
    You can invest in crypto through a SIP with just $10 per day/week/month. This can be an affordable way to invest each month without hurting your wallet. You can increase your monthly investment amount with a rise in your income via SIP step-up feature. We allow investors to top up their SIPs on a regular basis. So, even if you start with $10 or $100 every day/week/month, you can invest more over the years. This strategy can help you reach your investment goals at a faster rate.
  3. Dollar cost averaging
    Dollar cost averaging is a concept where you purchase more units when the Net Asset Value (NAV) of the fund is low, and lesser units when the NAV is high. Essentially, it averages out your purchasing costs over the tenure of the investment period. You don’t need to worry about how to time the market when you invest through a SIP.




World’s First Discount Exchange & AI powered decentralized crypto fund.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Weekly Stock Market Review: Week 10

What happens if you just pay a smaller amount than is owed each month to your credit card company?

How to Stop Living Paycheck to Paycheck Using “Profit First” Method

Woman behind bars looking outward into the sun.

How I Actually Keep Our Retirement Money Safer

Black and white image of the outside of a locked safe.

The Value of Budgeting & Everything you Need to Know

free credit report yearly government

My Portfolio Had a Spectacular 2020 — Now It’s Time to Change Winning Strategies

Multicolor table of S&P 500 Performance by sector from 2007 to 2020 (from Novel Investor where it’s even interactive).

What is the best way to check your credit for free.?

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store


World’s First Discount Exchange & AI powered decentralized crypto fund.

More from Medium

Internal Communications Introductions: Meet Gina Laughlin

How To Organize Your Work Space To Optimize Performance: A Thread

“The Productive Results In The Culmination is Evident”

T.AI.LOR — MADE : Pushing Fashion Forward with AI Technology