All You Need to Know About SIP Before You Start Investing in Mutual Funds |
Posted: January 11, 2018 |
Whenever you’ll ask for an advice from any investment expert or a person that holds a firm grip on the intricacies of investment, he will tell you to invest in mutual funds via Systematic Investment Plan, better known by its pen name SIP. Although you must have come across this term a lot lately, but are you really aware of the inside story and what this method of investing really holds in its womb? Well, if you don’t, then this article has been written for you, as it will provide all the information in the world that you ever wanted to get your hands on. So, don’t waste even a moment and read this write-up till the end! What is Meant by SIP? If we speak about the abbreviation, SIP simply stands for Systematic Investment Plan. But if we go into the literal meaning of this investment route, it stands for a strategy to dissect your investment amount into smaller parts rather than stuffing it all at once, and periodically parking them in the best mutual fund schemes which you could find on MySIPonline. When you begin with an SIP Plan, you endorse an AMC the power of deducting a predefined amount on regular intervals from your bank account. This amount will then be placed into the funds that you had chosen earlier on the dates you wish to invest in. This has made the SIP process to be known as robotic investment. How SIPs are Beneficial to the Investors? To have a better understanding of the advantages of an SIP Investment, let’s split them into two broad categories – monetary and psychological. In respect of the first category, SIPs fetch higher returns than what is obtained through lump sum over the long-term period because of the investments made at different market levels, and also the inherent advantage of rupee cost averaging. How to Get Started With an SIP? The answer is pretty obvious. First, choose the mutual fund schemes that you really wish to invest in. After that, you can immediately start with an online SIP Investment using your net-banking account. The entire process can be done within minutes on MySIPonline. What are the Odds of Reaping Higher Returns Through SIP? Highly Likely. When the market is undergoing a bullish phase, a lump sum equity investment may fetch somewhat higher rewards than what the SIP could fetch. However, this game can take a U-turn when the market is plummeting as all your funds are at stake at once under lumpsum, whereas this situation is prevented under an SIP Plan. And this is a frequent phenomenon. This is because equity market is volatile and one cannot predict with surety what turns the market may take in future. What is the Perfect Time to Start with SIP? None. In literal terms, there is nothing called “perfect time” in the realm of mutual fund investments. But to give a vague idea of when can you commence your investment, the starting of every month will be a good choice to enter the world of top SIP Plans since for most of us it’s the time when we get our paycheck. Hence, by now, you must have understood the importance of SIP as it guards your investment against a market crash, and helps you earn great returns during the favourable period. To know more about the best performing plans trending in the market, ask the experts at MySIPonline and get your investments on the track of future wealth building.
|
||||||||||||||||||||||||||||||||||||||||||
|