Mutual Fund SIP Advantages

Start Mutual Fund SIP Online

 

Choose the right scheme considering investment horizons, risk factors and exit load

 

For most investors, a systematic investment plan (SIP) means an SIP in an equity fund, and mostly for long term wealth creation to achieve a goal which is some years down the line. However, if you ask financial planners they will tell you that you can also have SIP in debt funds. Depending on your time horizon for investment, from a few months to several years, you can choose the appropriate debt scheme and set up the SIP accordingly. Depending on your requirement, you could also set up multiple SIPs. Some financial planners can even help you set up a structure where you transfer money only once at a pre-fixed interval, and your money goes into several SIPs.

According to financial planners, there are a few factors to consider while setting up a debt SIP. One of them is to select the appropriate scheme. Like equity funds, debt funds also come in various flavours and so each type of scheme can serve a different purpose. For example, if your time horizon is a few months and the purpose is to pay the annual health insurance premium, you can use an SIP in a short term debt fund. On the other hand, if your investment horizon is for a few months, liquid fund or ultra short term fund could be a better alternative, financial planners say.

Investors can set up an SIP at the portfolio level, rather than at the fund level. We suggest a portfolio approach to investing and set up SIPs accordingly. For example, we set up SIPs which automatically goes into equity and balanced funds.

To set up an SIP at the portfolio level, three factors are taken into account: risk profile of the investor, amount of money to be invested and the time frame.For example, if someone is investing Rs 10,000 every month for 10 years, the corpus will be distributed in one debt funds and three equity funds, and SIPs would be set up in all four schemes. Again, if someone is investing Rs 3,000 per month for 10 years, the SIP would be in a balanced fund.

In situations where there is scope for lump sum investment, usually financial planners set up at systematic transfer plan (STP) which in effect transfer a pre-fixed amount of money from this fund to other funds at regular intervals.

 

-----------------------------------------------

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

-----------------------------------------------