SIP-KnowledgeForecast

SIP:

Do you have ever heard the word "SIP"? The full form of the word "SIP" is a Systematic investment plan. This protocol is offered by mutual funds in which investors invest a small amount periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quarterly.

LET'S TAKE SOME OVERVIEW:

In sip, a fixed amount of money is debited by investors in their bank accounts periodically and invested in specific mutual funds. an investor is allocated several units according to the current Net asset value. Every time a sum is invested, more units are added to the investor's account.

SIP claims to encourage disciplined investment.SIPs are flexible; the investors may stop investing in a plan anytime or may choose to increase or decrease the investment amount.SIP is usually recommended to retail investors who do not have the resources to pursue active investment

LET'S KNOW SOME ADVANTAGES OF SIP:

• You can stop the SIP any time.
• You can skip SIP payments.
• You can start a new sip if you have more money.
• You become more disciplined in your savings.
• You can invest small amounts.
• You do not need to worry about the timing of the market.
• Past performance(For example-People who had invested in mutual funds 15 years ago are now reaping big rewards. Let’s have a look at some examples.

  Let’s say you had started a SIP of ₹3000 per month in HDFC Top 200 (see more details of this mutual fund here) in 1999. In a 15 year period, you would have spent a total of around ₹5.4 lakh. At the same time, your investment would be worth almost a whopping ₹35 lakh!

  Let’s take the same SIP amount in Franklin India Prima Plus (see more details of this mutual fund here). Again, you would have spent a total of ₹5.4 lakh. Your investment’s worth in 15 years would be nearly ₹31 lakh!)

  

Is SIP good or bad:

If you are an investor with a small but regular amount of money available for investment, SIPS can be a more suitable investment option. For investors with a relatively high investment amount and risk tolerance, a lump-sum investment may be more beneficial.

DO WATCH THIS VIDEO IF YOU WANT TO KNOW ABOUT SIP & LUMP'SUMS,AND HOW TO START INVESTMENT AS LOW AS RS 100.

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