A vacation to an exotic location can cost lakhs of rupees. As a result, people start saving for it well in advance. But rather than just saving money in your bank account, a SIP Investment Plan can be a far better option. How? Let us try to find out in this post.
A dream vacation is something that requires you to plan things in advance. Apart from the travel arrangements and the itinerary, the most important thing that you are required to plan the vacation is the total expense of the vacation.
A vacation to any exotic international location can cost lakhs of rupees, and you might be required to save for it for several months or even years. But rather than saving money in your bank account, a better option is to start investing the amount every month in a SIP plan. Savings through SIP offers many benefits that will help you leave for your dream vacation sooner.
Let us have a look at some of those benefits.
- Higher returns
With the top mutual funds offering returns of up to 20% or even more on a yearly basis, a SIP Investment Plan can help you earn handsome returns. With SIP investment, you let your money work for you rather than just keeping it ideal in a bank account. Even a return of 10% over a year can significantly increase your savings for your dream vacation.
- Disciplined investing
A lot of people create separate savings account for their financial goals and deposit a particular amount in it every month. However, this approach is not really a disciplined one. SIP investment makes you a disciplined investor. With a fixed amount debited from your bank account on a fixed date every month, you’d be able to achieve your vacation goal faster with SIPs.
- Types of funds
There are so many different types of mutual funds available now that every investor can now find one which perfectly suits his/her risk appetite and investment objective. There are equity funds, debt funds, thematic funds, hybrid funds, thematic funds, etc. which can be great SIP investment options. Just make sure that you thoroughly understand the type of fund you select for investment.
- Easy to monitor
You can easily monitor your investment in mutual funds online. Almost every fund house now has their own website where the investors can log in and monitor their investments. According to the growth of the investment, you can even increase or decrease your SIP amount. It is usually recommended that you should regularly increase your SIP investment to gain higher returns and achieve your financial goal faster.
- Highly flexible
Apart from increasing and decreasing your investment amount, SIP investment offers many other benefits too. For instance, you can instantly redeem your mutual fund units, and the money would be transferred to your account within 2 working days. Moreover, if you are not satisfied with the mutual fund you are currently investing in, you also get the option to switch to another fund.
While a dream vacation surely requires a lot of planning, let SIP investment handle your savings while you focus on everything else. Just ensure that you select a reputable fund house and a good mutual fund scheme.