Mutual Funds – SIP – All you Need to Know about it
Best performing mutual funds in India – Easily understandable, Systematic investment plans are a method of investment in mutual funds which allows you to invest a fixed amount at regular intervals of time. Best & Periodic investment plan can be selected according to your convenience. Through SIP long term financial goals can be achieved by putting a certain amount of money systematically in the SIP plan selected by the investor.
Through investing in systematic investment plan online, you can invest, redeem, transfer mutual fund investment at your fingertips, which is the most user-friendly investment strategy & is a need of today. If you choose the Systematic investment method of investing, then a fixed amount is debited from the bank at the selected date of every month through ECS or post-dated cheques provided by the investor at the time of purchase.
The amount is invested automatically in the selected Systematic investment plan every month. A variety of SIP plans are available for child marriage, retirement planning, education goals, short term – long term goals and many other specific purposes.
Systematic Investment Plan
SIP helps the investors to bridge the gap between savings and investments. Savings are not enough to achieve financial goals & equity investments are too risky for ordinary people, hence SIP’s are the best possible way through which a layman can fulfil his dream of investing in equity or debt funds & earn the equivalent returns.
As small amount is invested by the client in regular intervals of time, it becomes easier to spare a lesser amount as compared to the single-time investment. The investor can reap multiple benefits over different investment strategies by investing in a variety of best mutual fund investment plans available in India.
Benefits of Investing Through Systematic Investment Plans
Systematic investment plans are superior than any other investment methods due to multiple benefits. Multiple benefits that can be grabbed by investing in Systematic investment plans are described below:
- Power of Compounding on returns: Investing regularly for a long-term via Systematic investment mode helps you to avail the benefits of compounding as the returns earned periodically are also invested along with the monthly SIP amount. Through this technique your money grows exponentially in the long period. A small amount regularly invested in SIP plans of mutual funds provide much better returns than Lump sum investment.
- Rupee Cost Averaging: The amount invested allots you the mutual fund units at their NAV(current price), So when you invest via SIP’s, some units might be bought when the markets are low, and some will be purchased when are high. Due to this, the overall investment will be the averaged, and no massive loss will be incurred. It benefits the long-term investment to a greater extent as far as returns are concerned.
- Invest Burden Free: The Systematic investments go lighter on your wallet as you have to invest a small amount on a monthly basis, thus investment in SIP will not impart a financial imbalance, unlike other investment methods. In online SIP, the amount can also be auto-debited which saves the effort to deposit every month in the fund you are invested.
- Irrelevant to Market Volatility: SIP Investment in the mutual funds helps you to invest without worrying about the market volatility, micro & macro-economic factors. In this fast-paced era, where time is the most valuable asset for every individual, the SIP route of parking money saves the time and effort to invest precisely in mutual funds & create long term wealth.
- SIP – Smart way to become Disciplined Investor: The SIP investment help you to manage your finances in a more disciplined way by making you invest every month& making you disciplined investor. Hassle free investment is possible via option of automatic payments. Enormous wealth creation is possible at a slow and steady pace.
- Opportunity For All: Mutual fund investment plans allow the investor to invest a minimum amount of as low as Rs 500. Due to which any category of investor can grab all the benefits of investment. As compared to any other investment option, SIP provides the smallest option of amount to invest. All these advantages of SIP help you to attain your financial goals in the most beneficial manner. So, it is better to start investing at an early stage to achieve your financial goals on time.
Why Is Investment in Mutual Funds Better than Other Investment Methods?
Investment in mutual funds can be made either systematically month on month or lump sum. The systematic investment plan means depositing a fixed amount periodically while lump sum investment is more like a manual investment that can be done according to the convenience of the investor. For example, if you have to buy a Home, there are two options to pay for it. Either by cash or by Equated monthly instalments (EMI).
Similarly, mutual funds also give two different options to invest, either in SIP – month on month or in Lump sum, but in this case, systematic investment plan is considered more beneficial in many ways. If you are new to the mutual funds’ industry or if you don’t have enough time to track the upcoming ups and downs of the market, investing via SIP in mutual funds is a blessing for you. When Investor opts for Lump sum investment he is unable to grab multiple benefits. Apart from the discipline in investment, features like rupee-cost averaging and power of compounding are also ignored in lump sum investment.
While doing Lump sum investment investor needs to do an in-depth analysis and time the investment precisely to generate healthy returns. Investor can save yourself from this hustle and bustle by choosing systematic investment plans. SIP’s are often compared with recurring deposits, in which, SIP is always proved out to be a better option. Both of them are a conventional saving mechanism, Still RD’s turn out to be demotivating in terms of returns provided. As far as SIP investment plans are concerned, it is not a scheme in itself like RD, but a method to invest in any of the schemes provided by Mutual Funds.
The returns from mutual fund SIP investment depend on the scheme in which you invest. For example, if you invest in equity-oriented schemes through online SIP plans, then you might get higher returns while a moderate return will be generated through a debt fund investment. In SIP, the returns are subjected to market risk but are considerably better than that of recurring deposits. The returns generated in RD are fixed and stable but are not even close to the returns in systematic investment plans. Thus, online SIP investment is quite beneficial in terms of returns as well as features when compared to a conventional recurring deposit.
Procedure of working – Systematic investment Plans
Online SIP has now become a part of the financial schedule for most of the investors. But, many of them are unaware of the working procedure followed by systematic investment plans. Before actually moving forward towards taking investment decision, you should know how your invested amount is materialized into beneficial returns on investments done through SIP. Investing in SIP is a systematic & continuous process.
When you invest in SIP, it fetches some units of the scheme which are the worth the amount of your investment. The units are being distributed on the basis of NAV ( Net asset value) or the per unit price of the scheme. The number of units received by every unit holder or the investor depends on the NAV. Hence, if NAV is high, then you get fewer units against your investment, while a lower NAV will give you more number of units for the same amount invested. Thus, one can say that Systematic investment plans make use of the bullish as well as bearish market conditions.The Investment Perfect Destination to park funds.
After knowing about the advantages involved in SIP investment, you might need a perfect platform to invest in mutual funds via SIP, and if you are reading this, you are at the right place to invest. There are multiple reasons to why you should choose MF Invest India above any other online SIP investment platform available. We have partnered with all the prestigious Asset Management companies in India within the shortest span of time.
40 prestigious AMC‘s have come forward to joining hands with us who rolled out thousands of mutual fund schemes and have helped us enrich our bouquet of investment plans. Because of the up-to-date technical support & research, we have come up as the fastest growing online investment platform to assist & support investors in enhancement of their wealth securely. The investors can trust our online platform undoubtedly for mutual fund investment in systematic investment plans.
We reciprocate trust and reliability to our clients by providing bank-level security through safe and secure gateways. The success of investors who have invested with us is the result of dedication and diligence web developers, and the highly motivated team behind. We are always focused on helping you to invest in mutual funds in the easiest possible manner conveniently.
Most Favorable Features of Our Services Are:
- MF Invest India contains a list of mutual fund schemes which are updated on a regular basis to enable the investors to make the best use of their money .
- Clients can easily choose from the exhaustive list of mutual fund schemes of any Asset Management company.
- Clients can invest in schemes according to their needs with entirely innovative customized portfolio feature.
- A handy tool, known as SIP Calculator / Retirement Calculator is available for simplifying the calculation of returns where investment is made through systematic investment plan in Mutual funds.
- Easy to navigable dashboard is available with convenience to see the latest transactions and follow up all the investments anytime through any device online.
- The most recent market news and updates along with complete awareness of the upcoming funds are provided.
- Zero Charges for signing-up, personal advisory, investment, and transaction in any mutual fund.
- Encrypted transmission of data to ensure security and resistance from hacking.
- Investor Reach through chat, call, and email anytime for proper assistance regarding mutual fund investment.
SIP’s Are What You Need Right Now