All of us have aspirations and dreams for the future. No matter at what stage of life we are in, we all long for a better life, we all wish for a happy, secure future. Thus, most of us have some short-term and long-term goals to achieve, say, buying a car or a dream house or going on a foreign vacation, saving enough for our child’s education and marriage, and also building a substantial retirement corpus to be able to lead a comfortable post-retirement life. However, given the rising living costs and increasing financial demands, it may not be easy to raise sufficient money at a short notice to fund these future goals. To fulfill our aspirations, we need to amass a sizeable amount of money over a period of time. An easy and effective way to achieve that would be through a Systematic Investment Plan (SIP).
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Systematic Investment Plan (SIP) |
"Why SIP?", you may ask.
Through Systematic Investment Plan (SIP), one invests a pre-determined, fixed sum of money at regular intervals (weekly, monthly, quarterly or annually) for a set time period in order to build the desired corpus for his/her financial goals.
Instead of spending extravagantly, if we regularly keep aside the surplus money to invest in a SIP mutual fund, it will go a long way in fulfilling our financial dreams in the future. A SIP offers several other benefits too like flexibility, convenience, long-term gains, and tax benefits. Thus with SIP, not only will we get better returns but will also remain financially independent and debt-free. Therefore starting early with a SIP investment is the way to go.
This is how I am using SIP to fund my holiday home purchase
For quite some time, I had been thinking about buying a holiday home at a picturesque location in Odisha where my family and I could spend our vacations in nature's lap, away from the cacophonous city life. After mulling over the options, we agreed upon Daringbadi as the location. With its lush greenery and serene ambiance, it is an ideal destination to unwind and rejuvenate. At other times of the year, we can rent it out to other holiday-makers and generate good returns.
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Daringbadi, Odisha
(Image source: www.india.com) |
Starting from last June, I started investing into three Mutual Fund schemes through SIP to build the desired corpus for my holiday home. After closely studying the best SIP plans available in the market and analyzing their records, I chose Birla Sun Life’s Sabse Important Plan (SIP) for investment. Not only is it flexible and convenient but it is also quite simple to set up, given the self-explanatory user interface of the website.
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Image Source: www.inhabitat.com |
After an investor fills up the online form, he is recommended the right mix of equity and debt portfolio required to build the requisite corpus for a particular financial goal.
I am on my way to owning a holiday cottage in Daringbadi in ten years from now. What dreams are you saving up for?