Regular investing is a strategy where you invest small amounts regularly (say monthly). This ensures you to make disciplined and continuous investments regardless of market performance. By this, you can manage your money, as investing money regularly comprise to a savings approach. Recently, many new time investors have found that, it is easier to set aside a small amount on a regular basis rather than accumulating a large amount to make lump-sum investment.
By preparing a right budget for your personal monthly income, you can set aside small amount of money easily, and use it for investing. This makes your money working for you in a right away to maximize your opportunity for returns.
The main advantage of regular investing for a long term period is power of compounding. This refers to the re-investment of your money at the same rate of return to constantly grow your principal amount, year after year. For short period of investment this magic of compounding may not be worthwhile to get better returns.
Moreover, with dollar cost averaging, you don’t need to worry about the right time to buy because you are always investing. Ignore the latest trends and fads of investing. Don’t care about the market fluctuations, whether it is up or down. Investing regularly will help you ride out market volatility. It is waste of time to research about the market trends and you can make best use of your time.
If you are interested in investing small amounts regularly then Systematic Investment Plan (SIP) is the best way of investing regularly. It is a perfect tool for investing regularly and designed with all the benefits which are mentioned above. So, start investing in SIP, by determining the appropriate monthly amount needed to achieve your long-term objectives
