![]() SIPs are an effective medium of goal planning.So, over the long-term, SIPs can compound wealth productively and systematically.And if the equity market performs better, the corpus can be even greater provided the fund selection is apt.Horizon with a modest 12% annualized growth rate in equities. For example, a monthly SIP of Rs 1,000, in a mutual fund scheme with an appealing track record following robust investment processes & systems, can aid you build a corpus of approximately Rs 9.99 lakh over a 20 years investment.Offers the benefit of power of compoundingĪlong with the habit of investing regularly, SIPs power your investments with the benefit of compounding.It also enables you to lower the average cost This infuses good discipline because it forces you to commit cash at market lows, when other investors around you are wary and exiting the market. Under rupee-cost averaging, you typically buy more units of a mutual fund scheme when prices are low, and buy fewer Many a times, a SIP works better as opposed to investing a lump sum one-time.And if market volatility worries you, SIPs in fact can aid in managing (even-out) that volatility and prove effective, particularly when markets are at high. Instead, focus on 'time in the market' in the endeavour to create wealth by selecting the best mutual fund schemes with a dependable track record through SIPs and staying ![]() Timing the market can be hazardous to your wealth and health.The SIP route enables investments as low as Rs 500 per month. This in turn reduces your burden of defraying a lump-sum - at one go - from your bank account. SIPs facilitate you to invest in smaller amounts at regular intervals (daily, monthly or quarterly).Plus, it enforces discipline as your hard-earned money gets parked (debited from the bank account) either daily, monthly, quarterly in a respective mutual fund scheme. Works on the simple principle of investing regularly. Thus, take extra time and care to align your portfolio prudently!įor systematic wealth creation over the long-term, Systematic Investment Plans (or SIPs) offered by mutual funds are a good mode. ![]() This is because every individual’s risk appetite, investment objectives, financial goals, circumstances, investment horizon, Subscribing to the investment approach and portfolios of friends and relatives may not always reap the best results. Portfolio by recognising your financial needs/objectives, which could be the following, is essential: Plus, a galore of sub-categories, each having their own investment mandate to achieve the stated investment objectives. There are various categories of mutual funds - broadly equity, debt, hybrid, gold, and so on.
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