SIP v/s Mutual Funds –Compare SIP & MF in 2019
- DetailsWritten by PolicyBazaar -
- Hits : 93898 -
Updated date : 26 November 2019
At best, Systematic Investment Plan (SIP) is a way to invest in the mutual fund (MF) of your choice and build a corpus over an extended period. There are two different types of investment options for you in MF and one of them is SIP. The other one is the lump sum payment where you invest amounts once outright and see the money grow!
What is a Mutual Fund?
The mutual fund is a type of pool where money comes from different investors for investment in varied securities. This investment can be anything including market securities, shares, and debt securities or their combination. Investors in mutual funds share both profits and losses that the securities are prone to in accordance with the fluctuating market.
Why People Invest in Mutual Funds?
Mutual fund is a safe investment mainly because the management of this fund is through professional services that understand the market and can make knowledgeable decisions. There is a full time monitoring of the process present, which makes real time decision making possible. Execution of trading occurs on cost effective and largest scales to ensure minimum risk and high returns. Diversification of investment is the key element and this is the main reason why people prefer this kind of investment option. This minimizes the risks substantially. The initial costs of investing in mutual funds are quite low and this makes it a feasible option for everybody.
What is Systematic Investment Plan?
The Systematic Investment Plan calls for saving small amounts over an extended period. Through careful and regular investment, it is possible to create a substantial lump sum, which can help you to tide over financial constraints or provides the needed help when extra money is required in your personal life. Briefly, SIP plan is all about compounding wealth through systematic investment on a long-term basis.
Why Should you Invest in SIP?
Those who have long-term plans in their personal or family life are better off with Systematic Investment Plan when considering mutual fund investment options. It is necessary to understand that one-time payment option on the other hand does not give MF investors a high degree of benefits, since it does not take into account the fund downturn, which SIP plan does. No wonder Systematic Investment Plan becomes the preferred option when it comes to investing in a mutual fund of your choice.
Best MF for SIP Plan
Systematic Investment Plan (SIP) is a way to invest in a mutual fund, which is opposite of the single premium option. Whether you want to own a car in the near future or keep money aside for the higher education of your child it is easily possible through SIP. Mutual fund and Systematic Investment Plan are related to each other and in order to get the benefit of one you need to go through the other!
- Most Read
- Best SIP Plans: Top SIP Plans to Invest in India
Date: 14 February 2020
- How to Start an SIP for your Dream Vacation?
Date: 17 January 2020
- A Simple Guide to Systematic Investment Plan
Date: 16 January 2020
- Top 5 Reasons Why You Should Consider Investing Through SIP for Higher Returns
Date: 03 January 2020
- Can SIPs Help you Become Rich?
Date: 12 December 2019
- What is the Current Interest Rate on SIP
Views : 125360
- How to invest through SIP (Systematic Investment Plan)
Views : 68448
- What is SIP and What is its Full Form?
Views : 57635
- Systematic Investment Plan (SIP) – Features, Benefits & Process of SIP
Views : 19837
- How to Choose the Best SIP Plans
Views : 17703
- Income Tax Calculator
- Other Calculators
- Pension Calculator
- Savings Calculator
- Save Regularly
- Actual Savings
- Health Insurance Premium Calculator
- Car Insurance Calculator
- Bike Insurance Calculator
- SIP Calculator
- Life Insurance Calculator
- Term Insurance Calculator
- ULIP Calculator
- Premium Calculator
- FD Calculator
- Investment Calculator
- Travel Insurance Calculator