Mutual Funds SIP

Mutual Funds SIP

A mutual fund is a professionally managed funded investment plan run by an Asset Management Company ( AMC ) Which collects funds from the public as stocks, bonds and securities etc.,  and invests in shares.

An investor who is interested in mutual funds investment buys mutual fund ‘units’, which is basically derived from the underlying shares in the particular fund. The units would be allotted to the particular investor and can be redeemed as and when needed.
The selling rate would be according to the prevailing rates, which is called net asset value (NAV). The NAV of the mutual fund would be fluctuating every day and the earnings would be considered accordingly.

In India, all mutual funds are registered with the Securities and Exchange Board of India.

 

mutual funds sip

The main advantage of investing through a mutual fund is that it gives all investors to access professionally-managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital.

Mutual Funds SIP – Systematic Investment Plan

There are various types of Mutual fund SIP in the market. As an investor, you can go for Equity or ELSS Mutual Fund.

ELSS is a type of mutual fund SIP investment that qualifies for tax deduc­tions. Even though it is at par with other diversified equity funds, a lock-in period of 3 years, gives the fund manager the flexibility to make strategic investments with capital appreciation and growth in mind.

Considering the growth potential, most of the fund houses have renamed their ELSS funds as “Long Term” funds. These schemes are suitable for investors with a long term outlook, irrespective of whether they are taxpayers are not.

You can invest diligently through Sips, which helps you stagger your investments. Likewise, at the time of redemption, you need not redeem all units in one stroke. You can cash in as much as you require and let the rest stay invested.

Invest in MF ELSS through our NSE terminal, like you buy shares. Units will automatically get credited to your Demat account.

To start Mutual Funds SIP or one time investments, call 9886568000

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