‘FundsIndia Archives’ is a series where we put together the blogs that all of you’ve enjoyed reading over the years under popular and specific topics.
We have compiled a list of the top blogs on SIPs (Systematic Investment Plans). Have you always looked for means to invest in a proper, planned, and systematic manner? If your answer is yes, go ahead and jot down the tips from the articles below.
An SIP is an investment made at periodic investments in a set of mutual funds (or stocks, since you have stock SIPs, but that’s a discussion for another day). While the frequency is up to you, monthly periodicity is the most convenient. With over Rs 7,000 crore coming in each month, the SIP has become a byword for investing. But popular as it may be, the concept of it – what is an SIP, what it does, why it is useful – is still lost. This is especially true after the market rout of last year where SIP returns seemingly dipped. So here’s what an SIP is and what it is not. Read more
SIP – it’s the word you come across every day, in newspapers, online, hoardings, pamphlets, conversations with friends, colleagues or even neighbours. It seems like the word of the season, and for good reason. An SIP is a small step to your bigger dreams. It is a smart way to invest in mutual funds, by investing a small amount every month, which gradually becomes a big corpus, helping you achieve your financial goals. Simply put, a SIP is a periodic investment in a mutual fund for a fixed time frame, which has the potential to earn higher returns. Here are 7 reasons to start an SIP. Read more
Systematic investment plan or SIP is not an instrument of investment. It is just a method of investing in mutual funds. You can invest in mutual funds periodically or regularly (typically every month). Investing regularly helps navigate the volatility in the equity market and sometimes even in the debt market. The idea of a SIP is to buy through up and downs in the market so that you don’t time your entry wrong. The longer you do this, the higher the chances that you get averaging opportunities – that is – buy more in market dips. Read more
We all have our ‘eureka’ moment and mine came while buying mangoes. Yes, buying mangoes helped me explain why average costs come down more than you expect it to when investing through a SIP. One of the key benefits of SIP is said to be “cost averaging” but it is not easy for investors to understand how SIP averaging is different from what you would do in your daily life why buying more of the same thing. Read more
Since SIPs keep investing in funds at a regular periodicity, they buy MF units for you at different prices. Therefore, they help you average costs across market cycles. This means you sometimes buy when the unit prices are high (when the market is going up) and sometimes when unit prices are low (when the market is falling). This is how SIP effectively averages your cost. But there’s more to SIPs. Apart from the purely mathematical advantage of cost averaging, SIPs offer more benefits that help you amass a higher corpus. In reaching your financial goals, SIPs can help you in more ways than one. Here a few ways in which SIPs help you become a better investor. Read more
More often than not, we tend to believe that building wealth is stocking up cash inside a locker or trying to maintain a positive balance in a savings account. While undoubtedly prudent saving is the first step to building wealth, it remains just that – the first step. Building wealth, however, is more about the smarter process of multiplying your savings by investing in the right avenues for a secure future with realistic goals. So is there a way to make investing a habit? Could you do it on autopilot without having to remember it every time? Is it necessary to have a huge amount in order to invest? Read more
Buying a house means long-term commitment by way of EMI. The EMI amount is not small by any means, either. But that has never been a deterrent for most of us. We are willing to take a 15-year loan and pay our huge EMIs diligently, and ensure that we never miss a payment. But this same discipline, this same giving of good sums, this same long-term horizon is not present when it comes to our mutual fund investments. Here, we hesitate to commit a fixed sum. We are under-invested, content to put in small sums of just Rs. 1,000 or Rs. 2,000 a month, even while we commit over ten times of this to our EMIs. So, what if we compare a house investment with a mutual fund investment? If, instead of paying your EMI, you had been investing in mutual funds, what would you have ended up with? Read more
Mutual Fund investments can be made in an organized, regular fashion through Systematic Investment Plans (SIPs). It lets you invest a particular amount of money at periodic intervals (usually monthly). It is considered one of the best ways to invest since you get to mitigate the impact of market volatility. Also, every SIP instalment augments the value of the overall invested amount, thus increasing the value of possible returns as well. To take control of your SIP from Day 1, FundsIndia offers a convenient and comprehensive tool – SIP Calculator. Read more
When the market is going higher and higher every month, you may wonder why you have to use the SIP route. ‘Am I not buying at higher prices in each instalment?’, you may ask. Yes, like in a stock market that is steadily up, as we have seen in 2017, the chances are, you are actually buying at higher prices and raising your average cost. Then why do we still recommend SIP as the right method of investment? Read more
For all those worried about their SIPs and the negative returns that it has been yielding, here are 3 simple points to remember. Read more
Systematic Investment Plan (SIP) is now a word that has caught on in the investing world. And the idea of investing small sums has appealed to most of you, no doubt. But equally, there are many misconceived notions on what SIP is all about and how it needs to be used. Here are a few myths about SIP that we would like to demolish, so that you may use SIPs more effectively and build wealth optimally. Read more
Are you one among many that have always wanted to make regular investments and gear up towards building wealth for the future? So you garner the courage to put together a small amount of your “savings” to start an SIP. But! Instead of letting it compound, you check the daily status of your investments and let it add on to your stress. And this (absolutely unnecessary) stress, at some point, lets you think it’s better to stop your SIPs once and for all! Read on to understand as to why market volatility shouldn’t make you stop your SIPs. Read more
Worry over further corrections may tempt you into stopping your SIPs. But this is not the time to stop SIPs. Why? Read this illustrative article to know more.
Other articles you may like
- Reactivating lumpsum subscriptions and switch-in into 3 Overseas funds in Franklin Templeton
- A Time-Sensitive Investment Opportunity In Debt Funds (Invest Before 31-Mar-23)
- Merger of Axis Capital Builder Fund – Series 4 with Axis Flexi Cap Fund
- Introduction of SIP Pause facility under the Schemes of IIFL Mutual Fund (IIFLMF)
- IDFC Mutual Fund stands changed to Bandhan Mutual Fund with effect from March 13, 2023