What is SIP?
SIP means a systematic investment plan. It
is the easiest way to invest in mutual funds at any intervals viz.
weekly, monthly or quarterly as per preferences. A SIP model is nothing but a
method where a fixed amount is auto-debited from the investor’s bank account
and a certain amount of mutual fund units are bought based on their price on the
date of investment. This way when the market is low, more units come into
investor’s portfolio which later at the time of liquidation can be sold
handsomely.
MUTUAL FUND A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities . A mutual fund is formed when capital collected from different investors is invested in company shares, stocks or bonds. Shared by thousands of investors (including you), a mutual fund is managed collectively to earn the highest possible returns. The person driving this investment vehicle is a professional fund manager. Mutual funds have become a very popular avenue for investment for many investors because of the benefits that they have. They allow investors market-linked returns, diversified risks through asset allocation, affordability through SIPs and ease of liquidity. Given these benefits and the potential of attractive returns, investors choose to invest their disposable savings in mutual funds. Mutual funds come in many different variants and when it comes to choosing the best fund, investors are often confuse...
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