Download Tax Saving Mutual Fund Application Forms
Invest In Tax Saving Mutual Funds Online
Leave a missed Call on
94 8300 8300
Annual SIPs
You invest ₹ 10,000 every month in mutual funds through a systematic investment plan (SIP). If you had the funds would you like the option of investing ₹ 1 lakh once a year? After all, it is more convenient than investing every month, isn't it? But will it offer the same benefits as investing regularly? Reliance Mutual Fund recently launched an annual SIP option for all its mutual fund schemes. This is an additional option for those who want to invest a larger amount at one go, instead of smaller amounts. It is more a matter of convenience.
For the industry, the average amount through monthly SIPs is ₹ 2,500. But someone who wants to invest ₹ 1 lakh in a year may choose to do it through an annual SIP.
The annual SIP also allows for top- up, that is, the option to increase the amount, just like other SIPs. Most fund houses allow monthly or quarterly SIPs. Investors can choose the date of investment and the amount to be invested. A SIP helps instil discipline, by setting aside a fixed amount of money regularly. Most investors prefer the monthly SIP, since it can be timed to coincide with their salary, similar to a loan installment. By investing through SIP, investors do away with the risk of timing the market, that is, buying more when the market is down and less when the market is up. Since the investment is done at regular intervals, the price of the stock or unit will average out over the entire investment period. This is called rupee- cost averaging.
When the market is down the fund purchases more number of units and when the market is up, it purchases fewer units. In a monthly SIP, the investor will invest on a regular basis, allowing him to capture both the upside and downside in markets.
So, investors should opt for a monthly option rather than an annual payment option under the SIP facility, since the latter is more like a lumpsum investment.
This benefit is lost when you make a lumpsum investment.
In order to make good returns in a lumpsum investment you should ideally do it when the market is down. This is something that retail investors find difficult to do.
An annual SIP is similar to lumpsum investment. It can work in a rising market when you know that the bull rally will last for, maybe, five years or so. In such a case a lumpsum investment will give better returns than a SIP. But lumpsum investment or an annual SIP will not work in an uncertain market. In that case amonthly SIP will help by buying at various price levels. An annual SIP to get the benefit of averaging, the investment horizon should be 10- 15 years or more. There should be at least 10- 11 installments through SIP to get the benefit of averaging. Hence, in annual SIP the investment horizon should be much longer than a monthly or quarterly SIP
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them
OR
You can write back to us at
PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs
Download Mutual Any Fund Application Forms
---------------------------------------------
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Franklin India Bluechip
- ICICI Prudential Top 100 Fund
B. Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Birla Sun Life Front Line Equity Fund
- Franklin India Prima
C. Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Birla Sun Life Dividend Yield Plus
- SBI Emerging Businesses Fund
- HDFC Mid-Cap Opportunities Fund
- ICICI Prudential Discovery Fund
D. Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Franklin India Smaller Companies
E. Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- ICICI Prudential Banking and Financial Services Fund
F. Tax Saver Mutual Funds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
G. Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
- Birla Sun Life Gold
H. International funds Invest Online
1. Birla Sun Life International Equity Plan A
2. DSP BlackRock US Flexible Equity
3. FT India Feeder Franklin US Opportunities
4. ICICI Prudential US Bluechip Equity
5. Motilal Oswal MOSt Shares NASDAQ-100 ETF
Posts
No comments:
Post a Comment