![]() ![]() So don’t delay in starting your SIP investment.Īll Rights Reserved. Staying invested longer can help you get greater benefit from the power of compounding. The earlier in life you start an SIP, the longer you will be able to stay invested. An investor can continue making SIP and lump sum investments in the same mutual fund simultaneously. ![]() Can a lumpsum investment be made along with SIP in the same fund? So, if your chosen mutual fund performs poorly, you can lose money when investing via SIP. Yes, money is at risk in any type of market-linked investment. ![]() So, returns are not guaranteed unlike guaranteed return investments like FD or RD. SIP returns depend on performance of the mutual fund that has been chosen. How is SIP beneficial to investors?Īn SIP is beneficial to investors because it provides flexibility, long-term gains, regular saving, convenience with minimum investment as low as just Rs.500 per month. This comparison of can help investors select mutual funds that are consistent performers over the long term.įAQs Q. Investors must assess the performance of the scheme versus its benchmark and peers over different time periods like 3 years, five years, ten years and since scheme inception. This will make it easy for you to decide the type of scheme, term, frequency, and amount of SIP that will suffice to achieve your investment goal. To reap SIP benefits to the maximum, make sure you have identified your investment goal beforehand. You must identify your investment objective accurately for starting a SIP. For investors who have moderate risk tolerance, investing in a hybrid fund or a diversified large-cap equity fund might be a better option that investing in a small cap or midcap fund via SIP. While SIP benefits are many, you do have to consider certain factors before you start making mutual fund investment via a systematic investment plan: Determine Your Risk Appetiteīefore investing in mutual funds, it is mandatory for an investor to determine their risk-taking ability. This ensures that the returns from these small investments get more time to grow through the power of compounding so that you can create a large investment corpus with relative ease.įactors to Consider While Investing in SIP Using the SIP route, you can start investing earlier in life with smaller amounts and stay invested longer.
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