Disclaimer: This story is for informational purposes only and should not be taken as investment advice.'

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It doesn't matter whether you are an expert investor or a newbie you must learn about the multiple benefits of investing in systematic investment plans (SIPs). For someone who wishes to build capital over the longer term and not familiar with equity markets, investing regularly through SIP in a mutual fund is the strategy that ensures their success to a large extent.

Through SIP you can invest a fixed sum every month, instead of making a heavy one-time investment. Over the years, a SIP can give substantial returns, and this you can calculate with your SIP return calculator. While mutual funds help investors diversify across a host of stocks, SIPs help you diversify your portfolio over a period of time.

By staying committed to SIP for a long period of time, you will be able to average cost of purchasing equity or debt units. Investing in SIPs is a long-term affair, make the most of your investments. Always keep your SIP return calculator close, says brockerage Motilal Oswal. The brokerage advises you the following steps to be a successful investor: 

Begin with goal setting

SIP is a goal-based investment and just like any investment it exists to fulfil a purpose. Your goal could be anything -- saving for your retirement, your child's marriage, further education or even a foreign holiday. Linking your SIPs to specific goals will not only help you monitor your progress every month, but also determine how much money you are set aside every month to get there.

For example, a monthly SIP of Rs 1000 at the rate of 9 % would grow to Rs 6.69 lakhs in 10 years, Rs 17.83 lakhs in 30 years and Rs 44.20 lakhs in 40 years. The true benefit of SIP is reaped by investing when the stock market is at lower levels. The SIP return calculator helps in determining the amount you need to invest every month to reach your goal in the stipulated time.

Beef up your investment amount every year 

Although SIPs follow a pattern the way payments are made, the amount doesn't 't necessarily have to stay same every year. As your income rises, your savings will also go up. Ideally, for a salaried person, the investment amount should increase every year in line with the increase in your income. By doing so, you can have bigger goals even though your present income doesn't allow it. Increase in SIP amount can have a dramatic effect on your savings. Use your SIP return calculator to see even a 10 % increase in SIP amount can give you a 45 % bigger returns. That 's how your saviour, Provident Fund, is so effective as a retirement savings tool.
 

Spread your SIP payment dates

Fund houses have specific dates on which SIP investments are made, therefore, if you 're planning to start a SIP through the same funds or different funds for each goal, it would be wise to spread each investment across different dates of the month.

This allows you to retain some cash in your savings account since the money does not flow out in one go. But, the bigger advantage is that you reduce the risk of market timing because the money invested on different days, reducing the risk of any adverse market movements in the interim. 

You must know when to review your SIPs 

Knowing when to end something is just as important as deciding when to begin. If you 've been smart and linked your SIP to a goal, end the SIP as the goal draws closer and if you have achieved your goal before time, shift your investments to a more stable investment option. Leaving your money exposed to the whims of the market would not be a wise move.

On the other hand, if you have not managed to save the required amount, extend the SIP tenure. Whatever the case may be, keep your SIP return calculator handy so you don 't mess up the calculations.