Mutual Fund : A mutual fund diversify by adding many company stocks in to one investment.
A mutual fund comprises of a pool of money collected from various investors for the purpose of investing in diversified securities .
SIP ( Systematic Investment Plan) : SIP is a tool which works on the principle of regular investments. It is like your recurring deposit where you put in a small amount every month. It allows you to invest in a MF by making smaller periodic investments (monthly or quarterly ) in place of a heavy one time investment
SIP can be made daily, weekly, monthly or quarterly
Why SIP ?
- Despite there bring patches when the investments go under water, the case for Systematic investing in still compelling and remains the best way to participate in the equity markets.
Benefits of SIP :
- Disciplined Investing : It is better to follow a disciplined approach through SIP, as you are not timing the markets and also beat the short term volatility in them
- Productive Investing: An active SIP returns that a part of your income is automatically invested in productive & appreciating assets
- Power of compounding :Compounding refers to the re- investment to constantly grow the investment amount year after year.
- Flexibility of investment amount : SIP can be started with a small as Rs 500 per month making it lighter on the wallet
Before investing in Mutual Funds, first make a plan for what you are investing whether it is for ..·
- Child’s Education
- Child’s Marriage
- House Construction
- Tax planning
- For short term and long term goals
first decide the purpose for you are investing , then start investing as much as . And remeber ,Invest at least minimum of (5 -10 years).
It creat a good amount ot wealth over a period of time to meet your long term goal…
Investment is an art please do not invest on mouth publicity…there are approx 7000 mutual fund schemes of 42 AMC. A normal investor cant understand how to choose right fund for his goal..so take a specialised advise from any good financial consultant..and if you are already invested and not happy with your returns than ask us to serve your better in a professional manner..