SIP in Mutual Fund, stands for Systematic Investment Plan, a financial Planning tool that helps the investor to create wealth by simply investing the small amount of money every month or quarterly over a span of time.
Precisely SIP investment can be considered to be a disciplined way of investing in Mutual Funds. It, in another manner can be called as an allowed investor to invest a fixed amount of money regularly in a mutual fund scheme, so that people can invest their required amount in a better way. In short it can be considered to be an equity mutual fund scheme.
A DETAILED STUDY OF SIP
The popularity Of SIPs or better Systematic Investment plans has definitely gone up in the last few years. Hence if one asks for the best sip to invest or best mutual funds for sip, it is difficult to name in proper. The only credit, which has helped SIP to rise in its popularity and function and to reach thousands of people in a better and healthy way, creating a large profit, goes to Demonetization. Due to the massive step, individuals have discovered the charm, benefit and the glorious side of SIP and Mutual Funds. Amfi’s Mutual Fund Sahi Haicampaign has also helped greatly in popularizing the concept of SIP and Mutual Funds. Although SIP cannot be considered to be something very easy and clear to understand as at times the ones who have already made SIP investments in mutual funds, get confused about SIPs. Many of the investors investing their money into it, think SIP to be a product. Although one must understand that, SIP and Mutual Fund Schemes are definitely not synonym to each other. An SIP is a mere tool that helps one to invest regularly in a mutual fund schemes, mostly in Equity Mutual Fund schemes. Hence when one searches for best sip plans to invest or Top sip plans to invest, one must be very careful and conscious so that not one finds SIP synonym to Mutual Funds.
BENEFITS OF SIP
A Sip basically is considered to help one to stagger one’s investments in Equity mutual fund schemes over a period. Most mutual fund advisors do not recommend using a lump sum in Equity Mutual Funds. Rather they believe in staggering investments over a period depending upon the quantum of money. This is definitely considered to be a better way to invest in Equity mutual funds and avoid any sort of catching the market at a certain level.
WHY SHOULD ONE SIP?
SIP imparts financial discipline to one’s life. The main point of SIP is that you can invest regularly without facing any sort of wrestling with the market mood, index level and so on.SIP takes care of your worries regarding the market conditions due to which you can postpone your dreams. SIP even prevents your optimistic mood of investing more and more, as it may lead to your destruction as situations never remain the same throughout the course of time. The money is hence automatically invested regularly in a scheme or a proper rule, without any effort on your part.
Mutual funds can be extremely beneficial and profitable for an individual who knows how to, when to and where to invest it. It is a smart policy which enables one to increase their income or savings just with the help of little and smart calculations. NAV intensifies the investments in Mutual Funds determines the basic price upon which a bid or specifically an entry is to be made. Premium to Net Asset Value(NAV) presents when the value of an exchange-traded investment fund is at a premium to its daily reported accounting NAV.NAV or NET ASSET Value (NAV)represents fund’s per share market value or the price at which investorsbuy fund shares from a fund company. It can also be termed as the “Bid Price” and sell them (“redemption price”) to a fund company. It is determined by the division of the total sum of value and securities in a fund’s portfolio, less any liabilities, by the number of shares outstanding.