SIP Mutual Funds Investment Book
Systematic Investment Plan (SIP) is an Investment route offered by Mutual Funds wherein one can Invest a fixed amount in a Mutual Fund scheme at regular intervals– say once a month or once a quarter, instead of making a lump-sum Investment.
SIP stands for Systematic Investment plan, and it is a way to Invest a fixed amount regularly in mutual fund schemes. It is similar to a Recurring Deposit (RD) in a bank. In SIP, an Investor selects a period (1 year, 3 years or even perpetuity), intervals (weekly, monthly, quarterly etc.) and amount. The amount will auto-debit from the Investor’s bank account after every interval for a selected period. As retail Investors’ participation has been increasing in mutual funds, SIP is also gaining popularity amongst them. But still, most of the retail Investors are still unaware/unclear about Systematic Investment Plan (SIP). So, below we have explained the benefits of SIP.
Pros of SIP:
Rupee Cost Averaging
This is the primary benefit of Investing in mutual funds via SIPs. Rupee cost averaging is a phenomenon in which an Investor continues to Invest a particular amount at fixed intervals regardless of the share price/NAV. An Investor receives more units when the NAV of a mutual fund scheme decline and fewer units when NAV of the scheme rises. Therefore, over a long period of time, the cost of units to Investors will be significantly lower despite volatility.
By committing to Invest a particular amount at a fixed interval for a particular period of time, Investors instill discipline in their character, which is essential for building wealth in long term.
Investors can decide the amount, period and interval of SIP as per their convenience. Besides, they can increase, decrease or stop the SIP in a mutual fund anytime.
Cons of SIP:
SIP returns are lower in consistently rising markets:
Imagine this situation – Its New Year eve of 2009 and your rich uncle impressed by you & your cousin gifts both of you Rs 1 Lac. You both being financially prudent want to grow this windfall. You approach a financial planner and as every good planner would, he recommend you to Invest in NIFTY BeeS using SIP. So you follow him and plan Investment in 12 monthly SIP installments while your cousin puts his entire money as lump sum Investment in the same NIFTY BeeS. Who do you think made more money by 2010 New Year eve? Your cousin would have around Rs 1.72 Lac while you would have Rs. 1.37 Lac. So your cousin gained 25% more just by doing lump sum.
Limited options of dates:
For a SIP in Mutual Fund you need to decide a date in advance when you like to do your SIP and give an ECS mandate for the same. Most of the MFs have limited option (mainly 1st, 5th, 7th, 10th, 15th, etc). So you tend to Invest in multiple mutual funds on the same date. You want to lessen your risk by spreading your SIP in the entire month by choosing different dates for different funds.
There are times when you feel that markets are undervalued and you want to Invest more but then in SIP only a predetermined fixed sum gets Invested. Same is the case when you want to Invest less, you can’t do it.
Best SIP Investment Plans 2022
SIP+plans › SIP+calculator
Buy Zero Commission SIP Plans
Best Investment Plans
Choose the best out of 30+ plan, Highest Returns for Sum Invested.
Best Retirement Plans
Compare High Return Retirement Plans. Guaranteed Income.
Compare Investment Plans
Compare Guaranteed Income Plans Money Back Plans, Child Plans, ULIP
ICICI Prudential Mutual Fund - SIP Investment
Which is best Mutual Fund for SIP?
Is SIP good for Mutual Fund?
How can I start Investing in SIP?
Which is better Investment SIP or Mutual Fund?
SIP or Systematic Investment Plan Mutual Fund
SIP Mutual Fund calculator
top 10 Mutual Funds for SIP to Invest in 2021
how to start SIP Investment
best SIP plans for 1,000 per month
best SIP plans
SIP Investment full form
What are the pros & cons of a Systematic Investment Plan (SIP)?
Which are the best SIPs to Invest in India for beginners? My husband and I are planning to Invest 10k each per month in SIPs for a time frame of at least 7 years.
What is the best SIP (systematic Investment plan) in India with great returns? How long should the Investment be done for?
I want to Invest in SIP, 500 per month for 5 years. Is there any SIP available with this amount?
I’m planning to Invest in SIP (Systematic Investment Plan) with Rs. 3,000 per month for 5 years. What are some good SIP based on your experience?
Which is the best Investment: SIP, mutual fund or equity?
Is it good to invest money on SIP?
What is SIP (Systematic Investment Plan)?
I’m planning to invest in SIP (Systematic Investment Plan) with Rs. 3,000 per month for 5 years. What are some good SIP based on your experience?
What is the best SIP (systematic investment plan) in India with great returns? How long should the investment be done for?
How do I stop a SIP (Systematic Investment Plan)?
Can there be a loss in SIP (Systematic Investment Plan)? How?
Mutual Fund Investment Strategies,
Systematic Investment Plan (SIP),
Mutual Fund Investment Advice,
Finance and Investments,
Long classes require smaller models; $5 and under should work. However, if you prefer your classes short and sweet, you'll be able to|you 바카라사이트 probably can} go together with larger models. Determine how many of} spins you’ll get by dividing the money you plan to spend by the unit. For example, a $300 session divided by $2.50 models, would provide you with 120 spins.ReplyDelete