The Golden Rule of SIP (Systematic Investment Plan) is:
Let’s break it down:
- Start Early
- The earlier you start, the more compounding works in your favor.
- Even small amounts grow big over time.
- Invest Regularly
- Consistency is key. SIPs help you invest a fixed amount every month, making it a habit.
- You don’t need to time the market.
- Stay Long (Be Patient)
- SIPs are designed for long-term wealth creation.
- The longer you stay invested, the better the chance of riding out market volatility and earning higher returns.
Bonus Rule: “Increase SIP with Income”
- As your income grows, increase your SIP amount too.
- This is called a Step-up SIP and it supercharges your wealth building.
