Mutual Funds are the most popular investment vehicle offering various kinds of schemes. They cater to different investment objectives. We believe that investments through mutual funds are one of the safest, easiest and convenient ways of successful investment making. A plethora of mutual fund schemes with different features makes the right choice for an investor difficult. We have a dedicated task force to analyze the different schemes of mutual funds across various parameters on an ongoing basis.
Systematic Investment Plan in Mutual Fund is commonly named SIP – is really getting popular in India. Systematic Investment Plan is such a beautiful tool, which if used properly can help you to achieve all your financial goals.
We all have various financial obligations. Some of them like daily needs, school fees, etc involve the major outgo of your cash. Others like trip for your family or buying a fancy gizmo entails a one time payments for which money can be relatively easily collected. But for long term goals like retirement or purchasing a home require you to save and invest for many years. Yet irrespective of the amount involved and the time horizon, planning and investing money systematically and regularly enables you to sail through these obligations. A SIP could prove to be a simple and effective solution toward achieving these goals.
A SIP is a method of investing in mutual funds, by investing a fixed sum at a regular frequency, to buy units of a mutual fund schemes. It is quite similar to a recurring deposit of a bank or post office. For the convenience, an investor could start a SIP with as low as Rs 500; however this amount may differ from one fund house to other.
1) What is your equation to investments:
EARN->SPEND->SAVE OR EARN->SAVE->SPEND
The first is a wrong way of investing. You should be saving in a disciplined manner and SIP enables you to follow the second, which is the correct equation of investments.
2) Power of compounding:
SIP make sure that you are not only benefited on your investment but you also get returns over the interest which in overall will result generating greater returns.
3) Easy, Flexibility and Liquidity:
SIP is easy to start, manage and stop. It gives you flexibility to choose a desired scheme or to with draw in parts. And with conditions you have the money for contingency and emergency use.
4) You can also do SIP in ELSS (Equity Linked Saving Scheme) to save tax under section 80 C.
|Mutual Fund||3 Years Investment 36000||5 Years Investment 60000||10 Years Investment 120000||12 Years Investment 144000|
|Birla Sunlife Equity Fund||26||51990||17||92033||29||570925||27||847695|
|DSP BR Equity Fund||30||55142||22||103852||32||656368||28||890730|
|Franklin India Blue Chip Fund||28||54785||20||98935||29||549491||27||860441|
|HDFC Equity Fund||39||61979||26||112626||34||721916||32||1142897|
|HDFC Top 200 Fund||34||57909||24||109045||33||706670|
|ICICI Prudential Growth Fund||25||51186||16||90158||25||437115||22||616589|
|Reliance Growth Fund||29||54014||21||100716||38||901404||35||1407815|
|Reliance Vision Fund||25||51789||17||91941||33||677154||31||1078457|
|SBI Magnum Global Fund||29||54249||16||88337||31||607379||26||793162|
|Sundaram Growth Fund||24||50576||15||88069||25||458342||22||617858|
|Tata Pure Equity Fund||27||52625||19||95385||29||554004||25||727228|