SIPs for longterm wealth creation from "summary" of Let's Talk Mutual Funds by Monika Halan
Systematic Investment Plans (SIPs) are an excellent tool for building wealth over the long term. By consistently investing a fixed amount at regular intervals, investors can take advantage of the power of compounding. This means that the returns earned on the initial investment are reinvested, allowing the investment to grow exponentially over time. SIPs allow investors to benefit from rupee cost averaging, which involves buying more units when prices are low and fewer units when prices are high. This strategy helps to reduce the impact of market volatility on the overall investment. By investing regularly, investors can avoid trying to time the market an...
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