Investing in SIP early has several benefits, some of which are:
The power of compounding: The earlier you start investing in SIPs, the longer your investment has to grow through the power of compounding. Compounding helps to generate higher returns over the long term as it allows your investment to earn returns not only on the principal amount invested but also on the returns generated over time.
Rupee cost averaging: SIP investments are spread over a longer period, which helps to average out the cost of buying units of the mutual fund scheme. When the market is volatile and the NAV of the mutual fund scheme fluctuates, investing through SIPs helps to mitigate the impact of market volatility as you are investing at different price points.
Lower investment amount: Investing in SIPs early allows you to start with a smaller investment amount, which may be more affordable and manageable for young investors who may not have a lump sum amount available for investment.
Achieving long-term financial goals: Investing in SIPs early allows you to achieve your long-term financial goals more easily as it provides a longer investment horizon to grow your investment through the power of compounding.
Overall, investing in SIPs early is a wise investment strategy that can help you achieve your long-term financial goals with relatively smaller investment amounts and take advantage of the power of compounding.