Meet Jyotsna. She holds a stable job and loves to travel. But Jyotsna also dreams of a secure future and wants to invest in systematic investment plans (SIPs) for financial discipline. Five years ago, she would have to visit a bank, complete paperwork, present original documents, and consult financial advisors to start investing. However today, she can set up an SIP online through her mobile phone and start investing instantly. The credit goes to technology.
From mobile apps to one-click services, let’s explore SIP investments in the digital age and the benefits they offer.
Automated investments
Before the digital age, manual interventions for every SIP transaction were the norm. Nowadays, automation has simplified this process. Once you set your SIP for a particular amount and time frame, there will be automatic debits from your bank account to the chosen scheme. This automated process removes the need for manual updates, makes investing a hassle-free affair, and promotes consistency as you do not miss out on a payment cycle.
Online platforms
Earlier, investing in systematic investment plans required you to visit a bank or mutual fund office. Now, online platforms have taken over. Websites and mobile apps provide the flexibility to invest from the comfort of your home. This convenience attracts more investors and simplifies the process. No longer limited by geographical boundaries or the constraints of business hours, you can now browse countless SIP mutual funds online and initiate investments whenever you want.
Real-time tracking
In the past, staying updated on your SIP investments was a complex process. It involved going through paper statements or making visits to your bank. But the digital age offers real-time tracking tools. These tools give you an instant update on your investment performance. In fact, historical data on mutual fund schemes are also available on these platforms, helping investors make more practical decisions. This way, you can stay updated with your SIP growth and make quick decisions when necessary.
SIP calculators
Digital transformation also brought along tools like SIP calculators. Earlier, calculating the returns on your SIP investments required manual computations, often leading to errors. An SIP calculator simplifies this task. These digital tools allow you to input various parameters such as the SIP amount, time frame, and expected rate of return. They then offer an approximate amount you will accumulate at the end of your investment period. This information can be helpful in setting realistic financial goals and creating a structured investment plan to achieve those goals.
Virtual assistance and customer service
With technological advancements, virtual assistants and chatbots can answer your queries round the clock. These digital assistants guide you through the entire SIP investment process and make it less complicated for new investors. This streamlines the process and saves time for both customers and representatives.
Robo-advisors
Robo-advisors offer a convenient, automated way to invest your money through systematic investment plans (SIPs). Simply answer a few questions about your income, goals, time horizon, risk tolerance, and liabilities. Algorithms take over from there, analysing your profile to allocate assets like stocks, bonds, or mutual funds to invest via SIP. Robo-advisors have revolutionised SIP investments, helping investors eliminate emotional biases and make calculative decisions.
Final word
From cost-effective to rupee cost averaging, SIP benefits are numerous. They have indeed come a long way from the paper-and-pen era to a completely online process. Moreover, through digital tools, you can set up an SIP, execute trades, monitor their performance, and make adjustments with just a few clicks. From online platforms to mobile apps, these tools provide convenience and accessibility that can enhance your investment experience.
So, adapt to these digital tools and let technology help you make the most out of your SIP investments.
