Do you know? The value of your 100 Rs after 10 years is just 24 Rs?

If your money is idle in your bank account, then its value reduces over a period of time.

Let’s understand how SIP helps you to beat this inflation.

What’s the Superpower of SIPs?

Okay, so you know how you save pocket money every month? Imagine you put some of that money into a magic money plant that grows more every month – that’s kinda like what SIPs do!

1. Keep It Cool with Consistent Savings: With SIPs, you save a fixed amount every month, like clockwork. This helps you buy more shares when they’re cheap and fewer when they’re expensive. It’s like getting the best deals all the time!

Example: Let’s say you save ₹500 every month. In the first month, the share price is ₹20, so you get 25 shares. In the next month, the price drops to ₹15, so you get about 33 shares. Over time, your average price is less than the regular price because you’re a smart saver!

2. Magic of Compounding: Ever heard of a snowball getting bigger as it rolls down a hill? That’s how compounding works! With SIPs, your money grows, and the new money also makes more money – it’s like a savings snowball!

Example: If you save ₹1,000 every month and the money grows by 8% each year, guess what? After 10 years, you’ll have ₹1,53,845! That’s a lot more than if you just put ₹10,000 in the beginning.

3. Beating Inflation Like a Pro: Inflation is like a superhero villain that makes things cost more over time. But don’t worry, SIPs are your superhero sidekick! They help your money grow faster than things get more expensive.

Example: If things usually get 3% more expensive each year (that’s inflation), and your SIP makes 8%, your money is growing by 5% in real terms. So, you’re not just keeping up with inflation; you’re actually making more money!

So, in a nutshell, SIPs are like a secret weapon against Inflation Monsters. You save regularly, let your money grow like a snowball, and beat inflation at its own game.