Sanika Dixit :
Financial prudence suggests one should start planning for retirement as soon as we start our work lives. A penny saved is a penny earned, said Benjamin Franklin.
And when the pennies saved are invested well, they can grow and comfortably fund our financial goals and our retirement after 65 or whenever we choose to hang up our boots.
Today we have a lot of investment choices available at our disposal, yet many a people find retirement planning a challenging task. Systematic investment plans (SIPs) by mutual funds can make the process easy and effortless.
A systematic investment plan allows investors to invest a fixed amount every month in a specified mutual fund. The investment choices range from debt to equity and balanced funds, catering to a range of investors and risk profiles. Over the years, this option for investing has become popular all over the world mainly for its ease of use and low investment thresholds. In India, for instance, one can invest as low as Rs500 (Dh25) each month. Also, one of the chief benefits of investing regularly through such schemes is that we do not have to time the market and investors usually benefit over a long-term period.
We all know that the key to creating wealth is starting early. A small sum saved regularly can grow over years and allow us to retire well. Considering the abundance of fund options available with various banks and asset management companies, SIPs can be a good investment option for regular investing and retirement planning. For the smart investor, it offers more choices and transparency in terms of monthly investment options.
Don’t just save, invest wisely, too.
(The writer is based in Dubai).
