The benefits of SIP scheme are much higher than investing in mutual funds only.
Systematic investment plans for investment in mutual funds, ie SIP have become the most used means. Investors regularly invest in Indian mutual funds through SIP. 8/4/3 is one of the many strategy that you can adopt to get the best advantage from your SIP scheme. If you invest in SIP from this strategy, then you can live in profit. Come, it discusses it.
What is 8/4/3 SIP rules
The 8/4/3 SIP rule is a strategy that shows the growth of your investment in SIP scheme over time through the power of compound interest. According to this strategy, your SIP investment grows in three different phases:
Early growth year (1 to 8): Your investment increases continuously with an average annual return of 12% in the first 8 years.
Quick growth year (9–12): In this growth phase, your investment doubles and the compound achieves the same increase in the first 8 years due to power of interest.
Conversion growth (13–15): In the end three years, your investment once again doubles and gets growth of the last four years.
SIP investment benefits and 8/4/3 rules
Permission to start small
One of the many benefits of SIP is the facility to make a small start. That is, you do not need a large investable surplus (surplus) already to invest in SIP scheme. According to Kotak Securities, you can start from ₹ 500 or ₹ 1000 per month. It ensures financial inclusion every month without the need to be committed to the large amount.
Cynecology
Applying the 8/4/3 rule in your SIP scheme can help you use the power of compound. The circulation of the world as the eighth surprise of the world has a multiple effect on the creation of wealth. Through compound, you invest the interest earned with the original investment, and it increases your fund in the long run.
Promotes long -term investment
Long -term investment is one of the major benefits of SIP. When you are committed to your investment for a longer period through SIP by following the 8/4/3 rule, you can easily overcome market volatility and benefit from the cost average. This helps to average your investment.
Helpful in combating inflation
Inflation has a disruptive effect on money, and it reduces the value of money over time. According to Kotak Securities, by applying the 8-4-3 rules, you can compete on the power of compound, you can compete inflation and get inflation-inflammatory returns over the long term. This helps you meet long -term goals with discretion.
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