Systematic Investment Plan (SIP) is an easy user-addressed mutual fund tool. You invest in equal amounts at regular intervals and instill a habit of disciplined savings. SIP becomes crucial for those investors who do not have a lump sum amount to invest.. Moreover, investing in a longer horizon through SIP helps in earning better returns because of the power of compounding. Funding In sip is a kick-start for investments and SIP is a smart step to begin investing with an amount as low as 500 rupees. Here is how you assess the best sip plan for your financial growth which suits your own investment goals
- The first step. Let’s talk about your financial goals. Are they short term or long term? On the basis of this and many other factors, you can thoroughly check the best suitability of SIPs. With deep analysis and expert advice, you can check if you can venture to invest in low-risks or moderate-risks funds. Aggressive funds that are at a much higher risk stake, can be invested in well with thorough understanding of SIPs.
- Compare everything. Take into account the comparison of different funds historical return, NAV analysis, benchmark, and their achievements. And lastly, cross-check with the expert on the information that you have researched about the funds.
- Study the fund managers. Understand the work and habits that led to their success in their expertise. Tracking their record helps you realize how fund managers see and bloom the investments entrusted to them.
- Cost effectiveness. Before investing, keep in mind the expense ratio. When an expense ratio of a fund is high, it means that the fund is expensive. When the ratio is small in number, the fund is the right choice to invest. Scanning the market for the right funds and staying put in them have proven to be one of the cost-effective strategies to utilize.
As the years counted, the financial industry joined forces with technology, so choosing a sip investment has never been easier. Today you have, sip calculator, podcasts, blogs and write-ups, and much more that aid in selecting the best sip plan. Earlier when things weren’t this easy, investors only with the help of expert advice, invested in mutual funds. Some would yield returns and some boiled down as not ideal investments. . Here is the 2021 listing of mutual fund schemes that might boost your curiosity in investing.
Axis Bluechip Fund
ICICI Prudential Bluechip Fund
Mirae Asset Large Cap Fund
Kotak Bluechip Fund
Nippon India Growth Fund
HDFC Index Nifty 50 Fund
Open up & break the stigma and fear around mutual funds. Why not try sip in small amounts. This will not only help you understand your way around financial growth but also build trust in safe investing. Time runs fast, just like water sweeps easily through clenched teeth. Hence, open, speak, and keep learning about mutual funds.