Mutual Fund Investments

Generate wealth through Mutual Fund Systematic Investment Plan (SIP)!

Mutual Fund SIP works on the principle of regular investment like your recurring deposit where you put in a small periodic investment (monthly or quarterly) instead of one-time investment.

SIP allows you to pay 10 periodic investment of Rs 500 each instead of a one-time investment of Rs 5000 in a mutual fund.

Thus, you can invest in mutual fund without altering your other financial liabilities. It is essential to understand the concept of rupee cost averages and the power of compounding to better appreciate the working of SIPs.

SIP has brought mutual funds within the reach of an average person as it enables even those with tight budgets to invest Rs 500 or Rs 1000 on a regular basis in place of making a one-time investment.

While making small investments through SIP may not see appealing at first, it enables investors to get into the habit of saving. And over the years, it can really add up and give you handsome returns by investing in well performing diversified equity mutual fund scheme

A monthly SIP of Rs 2000 at the rate of 12% would grow to Rs 4.48 lacs in 10 years, Rs 9.51 lacs in 15 years and Rs 19.39 lacs in 20years. The rate of return could be even higher in a bull market.

Even for cash-rich, SIPs reduce the chance of investing at the wrong time and losing their sleep over a wrong investment decision. However, the true benefit of an SIP is derived by investing at lower levels and now the present market condition is favorable to start your SIP.

Investing through Mutual Fund SIP will be a prudent strategy to accumulate wealth over a period of time and help you to over come long term financial needs such as child's higher studies, holiday plan, purchasing house, child's marriage and your retirement plan.