Valentine’s Day is around the corner! You are surely planning to surprise your beloved with a unique gift. And because gifting flowers and chocolateshave been done to death, you think of taking a small personal loan or use your credit card to buy the expensive watch your partner has always wanted.
But hold on. By opting for credit, you will end up paying for a whole year. What’s more, you will be paying the lender 12-15% in interest because of the EMI structure. Now, what if we were to tell you that you can spend the same Rs 1,000 every month, but instead of “paying” 15% as interest, you “earn” 15% in the same time frame? Yes, that's what can happen if you opt for an SIP instead of an EMI!
By beginning a systematic investment plan (SIP) in a mutual fund you can make your beloved’s heart grow fonder not just for the gift you give but also for yourfinancial acumen!
Why SIPs soar above any other gift
The easy availability of credit means that youngsters often step into a debt trap.What they do not realise is that they end up incurring high interest costs. Instead, consider investing in mutual funds on behalf of your loved one.
An SIP in a mutual fund makes sense as a Valentine’s Day gift for more reasons than one. Firstly, you know the hopes and aspirations of your loved one. You will be aware of what your partner really wants in the long run. Therefore, by investing in an SIP for the long-term, you are, in fact, making a commitment. In other words, there is no better way to express that you will stand by your partner through thick or thin and have conviction in their dreams and aspirations.
The many advantages of SIPs
By investing in an SIP of an equity or debt mutual fund, you can reap multiple advantages. Firstly, you benefit from the rupee cost averaging
mechanism. This means you buy a higher number of units when the markets are low and a lower number of units when markets are high. As a result, you can average out your cost and also protect your investment from bouts of volatility. The key, however, lies in persistence and the patience to remain invested in the SIP of your choice.
Secondly, you benefit from the power of compounding when you invest in an SIP. This simply means that the returns from your investments are re-invested into the principal amount. So, the longer you remain invested in an SIP, the longer you stand to gain. This will help your partner in achieving their life goals, such as buying a home or going overseas to study further.
Rest assured, an SIP is a one-of-a-kind gift that your beloved is sure to appreciate and if marriage is on your mind, this step may just take your relationship to the next level! So, let your quest for the perfect Valentine’s Day gift stop here. Be both romantic and smart by investing in mutual funds
offered by Franklin Templeton.