MF SIP can build wealth for you in long term. However, one should overcome some of the myths surrounding MFSIP.
Biggest advantage of sip is they allow investors to benefit from rupee cost averaging in long term.
Balanced funds are good for average investors looking to invest in shares.
SIP allows you to benefit from the rupee cost averaging in the long term.
Asset allocation funds allow investors to buy both debt and equity and thereby reduce portfolio volatility.
Tax-saving funds have three year lock in. However, you need not necessarily sell them after completion of three years.
In an attempt to reduce risk and enhance returns, mutual funds have come out with hybrid products that offer more than debt fund returns, but still maintain equity tax treatment.
A fall in stock market does offer some mouth watering opportunities for savvy investors. At the same time it frightens novice investors. In volatile times the emotions typically rule the actions of investors. Hence it is a must to be careful with one‘s actions.
Higher SIP amount helps investor to tackle inflation in the financial goals. Also with the rising income levels, it is relatively easy to increase the mutual fund SIP.
Debt funds are not risk-free investment vehicles. Understand the risk-reward associated with each scheme and invest only if it caters to your requirements.
Systematic transfer plan allows investment at regular interval without keeping the funds idle in saving bank account.
Mehrab Irani, general manager of Tata Investment Corporation explains why a systematic investment plan works for the investor.
Banking sector funds are betting too much on two stocks - HDFC bank and ICICI Bank. These schemes' fund managers should allocate more to other opportunities in banking sector.
In an interview with CNBC-TV18, says Brijesh Ved, Senior Portfolio Manager at BNP Paribas AMC says that despite current volatility in equities markets, mutual funds are witnessing inflows.
Contrary to popular belief that MIP offers regular income, these mutual fund offerings may not help you to get regular income. Also exposure to equity and debt bring in different risks.
You have to define your financial goals first. Then you have to select the right schemes and rebalance your exposure from time to time till you redeem your investments.
It not only allows you to invest at regular intervals but also enhances returns as the cash is invested in liquid funds, which generally offers better returns than savings bank account.
While investing most investors sign off the form and forget about their investments. However, operational lapses can cost dear to the investor.
Mutual fund sip can help you to build corpus by investing regularly and thereby achieve your dream of financial freedom.
mutual funds provide an efficient medium to investors to practice asset allocation without having to worry about rebalancing the portfolio
Mutual fund investors have to learn to live with short term dips in schemes‘ performance and changes in ownership. Such changes should not deter focus on fundamental aspects of procedure of investment management.
Sector funds are meant for investors willing to take high risk to earn high returns
International funds may look great from the diversification point of view, risks such as currency risks, portfolio concentration risks and operational risks.
Multicap funds are market capitalization agnostic and invest across the breadth of the equity market.
Closed ended funds come with drawbacks such as lack of track record, no liquidity and absence of asset rebalancing.