Investing in a Systematic Investment Plan (SIP) is a popular and effective way to maximize your returns and grow your Investment in India. Personal finance experts often say it is hard to reach the first Rs 1 crore corpus through mutual funds, so what does this mean for those of us invested in Systematic Investment Plan (SIP)? Should we exit on a high or play the long shot by staying in the market?
A Systematic Investment Plan (SIP) is one of the most popular methods of Investing in India, as one doesn’t have to make a lump sum Investment. Instead, the investor can invest a fixed sum periodically, and this Investment is known as SIP. The investor can invest in mutual funds, stocks, and other market-linked products through SIP.
Systematic Investment Plan (SIP) is a way of Investing money regularly over a period of time. It is an Investment strategy that allows investor to invest in small amounts periodically, rather than Investing a lump sum. This makes it easier for the investor to invest, as the investor does not have to worry about Investing large amounts of money at once. As the investor invest in small amounts, the risk of loss is also minimized.
investor’ appetite continue to grow stronger for Systematic Investment Plans (SIP) and November month was yet another success story for the mutual fund industry. The industry saw a whopping Rs 7,982 crore worth of Systematic Investment Plan (SIP) inflows in November, taking the total to Rs 83,788 crore for the first five months of the current financial year.
A systematic Investment plan (SIP) is a way of making an Investment in a market-linked product, a mutual fund. SIP is famous among investor because it allows one to invest a fixed amount of money at regular intervals in a mutual fund. This helps in reducing the risk of market volatility and allows investor to reap the benefits of compounding.
What is SIP? A Systematic Investment Plan (SIP) is a mode of Investment offered by mutual funds. Using this method, an investor can put in a fixed amount of money at regular intervals into the mutual fund scheme of their choice. This helps the investor to save the costs of Investing in a lump sum.
The increasing popularity of Investing in mutual fund (MF) schemes through Systematic Investment Plan (SIP) is reducing the disposable income of the investor, as the investor has to make regular payments. This also increases the risk of Investing in the market, as the investor has to bear the risk of market volatility.
On RD schemes, an investor can receive between 5.8 percent and 7 percent returns, depending on the scheme, while Systematic Investment Plans (SIP) in mutual funds are expected to yield returns of between 7 percent and 12 percent. Even with the risk of market volatility, the returns are expected to be higher than those of RD schemes.
In conclusion, Systematic Investment Plans (SIP) are a great way to invest in mutual funds. SIPs can be used to reduce the risk of market volatility and to maximize returns. However, investor should take into account their risk appetite and financial goals before Investing in SIPs.
