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Tata Systematic Investment Plan
Invest as little as Rs. 500 a month.
When it comes to financial planning, we normally think of accumulating a certain amount first and investing the savings in a lump sum. This however may not be feasible since certain expenses assume priority over savings. For example, it is not possible to plan overnight for a child´s education or marriage. These are heavy expenses which require adequate time and planning, without feeling the pinch at the time of expense.
In the Systematic Investment Plan (SIP), you periodically invest a fixed sum of money, as low as Rs. 500/- per month, into a specific investment vehicle, for a pre-determined period. If you are considering investing for a long term then SIP makes perfect sense.
Key Benefits of SIP
- Light on the wallet
If you cannot put aside large sums of money as investment on a monthly basis, the SIP route will trigger your mutual fund investment with an amount as low as Rs 500.
- Makes market timing irrelevant
Most investors are not experts on stocks and are even more out-of-sorts with stock market oscillations. With an SIP investment, disciplined investing over the long term sees to it that an investor is not guided by the market-timing strategy.
- Helps you build for the future
Most of us have needs that involve significant amounts of money, like child´ s education, daughter's marriage, buying a house or a car. By saving a small amount every month through SIPs for some purpose, you actually subscribe to a far more scientific process of building wealth.
- Compounds returns
The early bird gets the worm is not just a part of the jungle folklore. Even the 'early' investor gets a lion's share of the investment booty vis-à-vis the investor who comes in later. This is mainly due to a thumb rule of finance called compounding′. By starting early, you give more time for your investment to perform for you, leaving you with a sizably larger corpus compared to the late investor.
- Lowers the average cost
SIPs work better because of rupee-cost averaging. Under rupee-cost averaging an investor typically buys more mutual fund units when prices are low. On the other hand, he will buy fewer mutual fund units when prices are high. This is a good discipline since it forces the investor to commit cash at market lows, when other investors around him are wary and exiting the market. Investors may even be pleased when prices fall because the fixed rupee investment would now fetch more units
The convenience of SIP
You can easily enroll yourself for SIP by submitting post dated cheques at time of investment. We will deposit the cheques on the requested date, credit the units to your account and will send you a confirmation for the same.
You can also use SIP Auto Debit Facility which saves you from the hassles of writing multiple cheques. This facility offers direct debit of SIP payment through Electronic Clearing Service (Debit Clearing) of the Reserve Bank of India (RBI).
Do contact us toll-free on 1-800-209-0101, in case you wish to know more about our Systematic Investment Plans.