Tuesday, 20 July 2010

SIP OR SYSTEMTIC INVESTMENT PLAN IN MUTUAL FUND

In my last article about mutual fund, I discussed that one can harvest profit from the stock market through mutual funds, even if he is not much aware of stock market trading.  Yes I strongly recommend that this is the best method to get profit from stocks without know much more about stocks and stock market. Just know some mutual fund companies which are expert in the field and invest in their plans according to our investment plan.

Here I am saying one popular method of investing in Mutual funds even if you don’t have enough money to deposit in one go. Normally you can start to investing in Mutual fund with a low amount of  5000 bucks, If you don’t have  this much money with you in one single payment still you can start investing with mutual funds. The method is known as SIP (Systematic Investment Plan). A small amount of money, say 500 bucks or even with 100 bucks invest regularly every month for a stipulate period is known as SIP.

This is convenient for regular income people, salaried persons etc. Even low income people also can invest in mutual fund under SIP. This is convenient for the future long term goals such as marriage of children, Higher education of children, purchasing a house, retirement plans etc. One of the main advantages of the SIP is that it will overcome the market fluctuations. When the market is high you can get each unit of mutual fund with a high price and when it is low you could get each unit in low price also. Then you can stabilize your return, means the high price can be compensated with low price and you could earn a medium profit.

Let us point out some of the advantage of SIP

1.    For meeting a large future expense such as marriage, higher education you can start saving early with small regular amounts.

2.    Do not invest a huge amount together; just invest small amounts such as 500 or 100 bucks. Accumulate wealth over a long time.

3.    Reduce risk by investing a big amount in one time in the volatile market, which may vanish all your savings in no time.

4.    Pay by postdated checks or auto debit or by ECS and avoid the headache of depositing regularly by cash or checks.

So I repeat that better to invest in mutual funds to get profit from stock market, if you are not an expert in stock trading and also better to invest in SIP (Systematic Investment Plan) for convenience and a steady income.

Related posts

Mutual funds are the alternative way of investing in Stock Market
Know Shares And Share Market To Make More Money From Stock Exchanges
Stock Market Trading, the things should be considered.

15 comments :

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    ReplyDelete
  2. The downside Many mutual funds require a minimum investment. Mutual Funds

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  3. You give them a small amount of money, they add it to that of thousands of other investors and they watch over it for you. Fund Investing

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  4. When I signed up year before last, it was after several years of dithering because the range of choices overwhelmed me. Mutual Fund

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  5. When I signed up year before last, it was after several years of dithering because the range of choices overwhelmed me. Funds Investing

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  6. You give them a small amount of money, they add it to that of thousands of other investors and they watch over it for you. Mutual Funds

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  7. Investors who are used to investing in mutual funds will enjoy knowing that a number of mutual funds invest directly in commodities. Funds Investing

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  8. [...] and study the market, go for mutual funds. You can invest monthly in mutual funds under Systematic Investment Plan (SIP) just like recurring deposit in Banks. There are so many types of mutual funds. Find a few [...]

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  9. [...] If we try to invest in one lot, it may not possible for most of us. Try to invest regularly. Systematic investment in various investment schemes is good and advisable. One can make regular investment in regular [...]

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  10. [...] investors minimum required investment is Rs. 1 Crore and multiples of Re. 1 thereafter. The Systematic Investment Plan (SIP) is also there with a minimum installment of Rs. 500 and the minimum required monthly [...]

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  11. [...] case of Systematic Investment plan all the old SIPs (SIPs started earlier and still continuing) does not need this third party declaration. But new [...]

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  12. Dear Sir,
    I am working in good organization in Oman country as a Civil Engineer.I would like to know that where i should invest my money.so please advised me.

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  13. [...] be KYC compliant, (Completed the KYC formalities) for investing in Mutual Funds in a lump sum or in SIP (Systematic Investment Plan). So we strongly advice all investors those who wish to invest in [...]

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  14. [...] transactions, you can avoid transaction cost also. Mutual funds are allowed to buy online through Systematic investment Plan also. SEBI has banned the entry load on mutual funds and a lot of Mutual fund agents stopped [...]

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  15. [...] transactions, you can avoid transaction cost also. Mutual funds are allowed to buy online through Systematic investment Plan also. SEBI has banned the entry load on mutual funds and a lot of Mutual fund agents stopped [...]

    ReplyDelete