| There exists a misconception with amateur | | | | matter, when you invest does. Timing the market |
| investors who consider SIP to be a kind of a | | | | is critical and through SIP you keep investing at |
| Mutual Fund. Technically speaking a Systematic | | | | regular intervals which makes it all the more |
| Investment Plan is not a Mutual Fund, rather a | | | | possible to have the amount invested at the right |
| way to invest upon it. There are a couple of | | | | time. Simply investing will also not count if you are |
| ways that you can invest in a Mutual fund; one is | | | | not aware of the assets that you are investing |
| a one time payment and the other through | | | | on. Through Equity Research along with correct |
| periodic investments. The later is termed to be | | | | asset allocation is to be done prior to investing in |
| Mutual Fund SIP. It is more of an investment | | | | Stock Markets. Opting for the guidance of a fund |
| mode rather then an investment avenue as many | | | | manager helps. |
| point out. An average investor opting for Mutual | | | | Mutual Fund Investments are always considered |
| Fund Investments via Mutual Fund SIP invests in | | | | to be risky. Hence opting for the correct assets |
| small amounts at regular intervals instead of a | | | | do help. Say your investments is diversified into 3 |
| lump sum payment. In this case he is benefited | | | | classes, if either of them suffers a loss you will |
| by escaping the volatility that exists in Stock | | | | have the other two assets on whom you can |
| Markets by lowering the average purchase cost. | | | | bank on to equalize your return. Diversifying your |
| Since the investment amount for each SIP | | | | portfolio as much as possible helps. The last year |
| installment is fixed, the investor gains by receiving | | | | recession did make the stock market in India go |
| a higher number of mutual fund units, assets | | | | volatile. As of now the best Indian Mutual Funds |
| collectively termed as Mutual Fund NAV (Net | | | | that could be invested on are 1) Franklin India Blue |
| asset value). | | | | Chip Fund, 2) HDFC Equity, 3) ICICI Power |
| Investing through Mutual Fund SIP disciplines your | | | | Prudential, 4) Fullerton India Mutual Funds, 5) |
| investment attitude. Often lack of discipline has | | | | Sundaram Growth (Data from genuine resource). |
| been citied as the major reason for failing to | | | | Almost every other advertisement reads |
| reach long term financial goals. Amount that is | | | | “Mutual Funds investments are subject to |
| saved aside for investment purposes gets spent | | | | market risk, please read the offer document |
| on unnecessary things hence canceling the | | | | carefully before investing.” It is imperative |
| investment. Also high amounts are another cause | | | | that you conduct a thorough analysis on the fund |
| of worry. With a SIP the investment amount is | | | | you are investing upon. It’s past performance |
| low and periodic, hence making the entire process | | | | (3 years) should tell a lot. Overall if you tread |
| easy. Another important aspect during investment | | | | properly prior to investing in Mutual Funds, you |
| is timing. How long you keep investing doesn’t | | | | could reap handsome rewards. |