Skip to main content

What is SIP ?......


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.

Comments

Popular posts from this blog

What are hybrid mutual funds and how are they taxed?

What are hybrid mutual funds and how are they taxed? Every investor is different. There are some who like taking risks and enjoy the potential of high returns. On the other hand, there are some who are very conservative in terms of taking risks. They don’t mind the low returns as long as they are assured of capital security. Then there are those who are in the middle of the risk spectrum. They are not too aggressive neither too conservative. They look for moderate risks with moderate returns. To suit the investment preference of these different types of investors, mutual funds come in different variants. One such variant is the hybrid mutual fund which is suitable for moderate investors who lie in the middle of the risk spectrum. Let’s understand the concept of hybrid mutual funds and their tax implications – What are hybrid mutual funds? Hybrid funds are mutual funds which invest in both equity as well as debt instruments. The return potential of equity investment is adde...

Have you saved enough for your child’s future financial needs?

Mutual Funds Plan for children is the answer to secure your kid’s financial future Every parent aspires to offer the best to their children – sound education, a decent lifestyle and most importantly, adequate financial security for them to pursue their dreams. But in order to fulfil these desires, it is necessary that planning and regular investments are done early on. And what better than Mutual Funds to achieve these objectives? What are Mutual Funds Plans for children? Mutual Funds Plans for children are the mutual fund schemes specially designed keeping in the mind the long term financial needs of a child. How do Mutual Funds Plans for children Work? They invest proportionately in both equity and debt instruments to maintain a balance between growth and regular income, depending on the scheme. These are mostly hybrid funds that seeks to generate income by investing in debt, money market instruments and equity and equity related securities. They are ideal for investors ...

Tax free benefits make whole life ULIPs the perfect retirement plan

When your clients look for investment returns and insurance coverage, the first product which comes to your mind is a Unit Linked Insurance plan (ULIP). A ULIP is an insurance plan which provides a unique combination of market-linked returns as well as life insurance coverage. Moreover, the new age ULIPs which are now available in the market promise additional benefits, both in terms of coverage as well as benefits offered. Modern-day ULIPs have, in fact, undergone a sea of change compared to traditional ULIPs which were available about a decade or more back. Some of the notable changes include the following – The charges under new age ULIPs have reduced drastically. While, earlier, the premium allocation charge and other charges associated with the policy rode up to 40% or more, current ULIPs have charges lower than 5%. With the reduced charges the revamped ULIPs offer higher allocated premiums which, in turn, provide better returns to customers The coverage tenure under many ...