Why SIP?
The UTI Systematic Investment Plan is a unique plan that allows you to fulfil all your dreams efficiently. With salient benefits and features, the UTI SIP becomes a wise choice for investments. An investor can make regular investments and follow a disciplined approach towards investing in UTI MF schemes. He can also peruse the Systematic Investment Plan according to pre-opted schedules.

Take a look at all that you can do with UTI SIP:

• Build your future.
  To meet the more exhaustive expenses of your life like marriages, education or a house, you need to start investing early. Save a small amount every month/quarter with SIP and look forward to a bright future.

• Relax and accumulate wealth.
  With SIP, you don’t need to invest a huge sum of money i.e. you can start with an amount as little as Rs. 500. Gradually, you can accumulate wealth over the long-term.

• Reduce risks.
  For efficient participation in this volatile market, SIP helps you average out your cost by generating superior returns in the long run. It reduces the risk associated with lump sum investments.

• Enjoy the convenience.
  Set yourself free from cumbersome paperwork. Just identify the amount and scheme that you wish to invest in and then choose from options like Auto Debit/ECS. The amount will automatically get debited on a date of your choice. You can also give monthly/quarterly post-dated cheques for the amount you wish to invest.

• Build your investment at regular intervals.
  With SIP, you can invest a pre-determined amount of money in chosen schemes at the applicable NAV based Sale Price on each transaction date. Each transaction will fetch you additional units that will be added to your investment account.s

Now, let’s briefly discuss the step-by-step approach an investor can use with SIP to reach out for his goals. It is important to remember that an early investor builds more than the one who comes in later. The simple reasoning being; the accumulated investment increases with fresh capital which is invested at periodic intervals.

Steps:

1. Set your financial goals.
2. Identify the scheme.
3. Decide the SIP amount.
4. Look for a long-term commitment by opting for bigger gains. SIP returns increase with an extended time horizon. Aim for the big picture which is to get the most out of the market fluctuations.
5. Start investing! The sooner you start, the earlier you reach your financial goals.

UTI SIP comes with its own benefits, the most pronounced being ‘Rupee Cost Averaging’.

SIP allows you to invest a uniform amount regularly. An average of all the cost of acquisition of units will in turn give you an average cost per unit. This will determine your overall return on your investments.

The table above shows that when invested through SIP, the average purchase price works out as low at 9.836, compared to a lump sum investment of Rs. 10.

The next benefit is seen as the ‘Power of Compounding’.

As an investor, when you extend the investment period, you can earn profit on your current profit, and accumulate more wealth. This reiterates the fact that investing fresh capital at periodic intervals raises the accumulated investment.

The illustrated graph given below stands testimony to this.

Let us take an example of a monthly investment of Rs. 1000.

*The amounts are indicative as the rates of growth are assumed, over specified periods.