Money is the biggest driving force in the world. With the introduction of electronic records, although 90% of the world's money is on paper, it is hoped that astronomical figures will be balanced by banks. Never lose heat. SIP investment provides investors with a good incentive to save and save more money and become a winner in the battle called "Life."
No one can deny that people have different intuitions by nature; even investment consultants know. Perhaps this is why every investor has countless SIP plans. Some types of SIP investment plans worth mentioning are:
1. from
Growth plan: from
A person can choose a specific amount each month to invest in SIP, and the money will continue to accumulate. Based on the percentage of equity and debt ratio, your investment will see growth. And, at the end of the term, your capital plus return will be your fund's value. During the term of office, if the fund does not achieve the expected results, investors can freely switch to other better performing funds.
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Dividend plan: from
The company needs funds. In order to raise funds, they grant ownership to investors in proportion to the amount of liabilities in the liabilities. The company regularly [mostly once a year] return a certain percentage of profits to investors in the form of disputes. The split type SIP plan is good for those who wish to return regularly. Dividends have a vague idea of the performance of the fund.
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Fixed term plan: from
These are mostly closed mutual funds that invest in debt instruments. Since maturity is predefined, investors feel safer. If the investment is more than one year on a certain day, the return is exempt from tax. Therefore, if you want to stay away from the tax liability you have to pay with your time deposit, you can consider investing in FMP's. These can also be a division plan.
According to the location of capital investment, SIP investment plans can be divided into - stock funds and debt funds.
- Equity fund: from
As the name suggests, these funds focus on tools that are tied to the market, such as company stocks. Since the value of the stock changes according to the market index, the risk is higher. However, if you keep it for a long time, you can enjoy the sharp rise in the value offered by other instruments. - Debt Fund: from
When you choose a debt fund, you invest your money in tools that are not affected by the market. In most cases, the fund manager invests funds in deposit and commercial paper certificates that are substantially consistent with the period chosen by the investor. As a result, you get a fixed return; that's why managers tell their customers about their investment paths and expected returns at the start of the program.
The third premise of the SIP plan classification is the lockout period. Investors can choose the following types of SIP investment plans, depending on whether they can save money over time:
One. from
Open-end fund: from
As an investor, you have complete control over your money. You don't have to stick to the investment for the chosen period and withdraw funds when needed. There is no guarantee how much you will get, but the positive part is that these funds are absolutely liquid. You can choose to invest at any given point in time after the release.
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Closed-end fund: from
These SIP plans have a lockout period. Investors cannot withdraw funds until five or seven years have passed. He can only invest in a fixed period of time after the start of the plan. SEBI provides relief to investors and has approved two exit routes – rarely repurchasing and listing in the index.
All in all, the world of SIP investment is really huge, and it offers some or another for various investors. Higher returns, flexibility of replacement, partial exit freedom, and most importantly, tax incentives are some of the advantages that encourage people to invest in SIP programs.
Orignal From: Crack SIP investment guidelines
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