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. Innovative plans/services for investors (SIP/STP/SWP)īut selecting the best mutual fund schemes in accordance to your risk profile, investment objectives, and investment horizon, is a critical task.Lower entry level (you can start with as little as Rs 500).The top-6 benefits of investing in mutual funds are: Investing in mutual funds is a promising avenue for wealth creation. “Don’t save what is left after spending, but spend what is left after savings”.įurther, your savings need to be parked in investment avenues that are productive, whereby you benefit from the power of compounding, grow your wealth and counter the inflation bug better, as it otherwise erodes the purchasing power of your hard-earned Therefore, focus on your budgets, lower your expenses so that you save more and accomplish the envisioned financial goals. Your financial security lies in being completely in control of your personal finances. It is irrespective of how much you earn per month and who you are. Hence, as much as a regular medical health, a Financial Health Check-up, too, is essential for your wellbeing at every phase of life. Health’ also plays a critical role to meet many aspirations of life –that’s the bitter truth! However, what most of us often forget is that ‘financial We recognise the importance of being in pink of our health to make our dreams come true and provide the best to our family. Many of us get a health check-up done at regular intervals. Pradhan Mantri Jeevan Jyoti Bima Yojana.Commercial Vehicle & Construction Equipment Loan.
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