SIP (Systematic Investment Plan) has become a favorite investment option in today's time and is rapidly becoming a part of everyone's portfolio. It is considered a very good option in terms of wealth creation. Experts believe that the average return in long-term SIP is 12 percent, which is much better than any other scheme. But apart from this, many such benefits of SIP are rapidly attracting investors. Let's know about the 5 big benefits of SIP-

Flexibility
The first advantage of SIP is that there is flexibility regarding the investment period and amount in investing through SIP. That is, you can choose the option of a monthly, quarterly, or half-yearly investment period as per your convenience. Apart from this, whenever you need to, you can stop it and withdraw money from your SIP. You can also pause SIP for some time if needed.

Rupee Cost Averaging
When you invest from time to time, you get the benefit of Rupee Cost Averaging. That is, if the market is in decline and you invest money, then you will be allotted more units, and when the market booms, the number of units allotted will be less. Even in the case of fluctuations in the market, your expenditure remains average. That is, even if the market falls, you do not go into a loss. In such a situation, when the market booms, you get a chance to get better returns on your average investment.

Power of Compounding
The benefit of compounding is tremendous in SIP, so SIP should be done for a long time, the longer it is done, the greater will be the benefit of compounding. Under compounding, you do not get returns only on the amount you have invested. Rather, you also get returns on the earlier returns.

No Maximum Investment Limit
You can start SIP with just Rs 500, that is, you can invest even small savings in it. There is no maximum investment limit. Apart from this, you can run multiple SIPs simultaneously. Also, if you feel that your income is increasing in the future, you can increase the amount in your SIP.

Disciplined Investment
Through SIP, you learn to save for a fixed period of time, that is, whatever amount you want to invest on a monthly, quarterly, or half-yearly basis, you spend the rest only after saving that amount. In this way, you get into the habit of disciplined investment.