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rwadiwala · 5 years ago

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Best Mutual Funds for SIP to invest in 2020

Are you searching for the best investment plan for your hard-earned money? Not sure where to invest it? If these questions keep on popping in your head then don`t worry, we have everything covered for you! We will tell you the best way you can invest your funds and get the best returns.

An SIP or Systematic Investment Plan is one of the smartest and easiest ways to invest your money in the form of Mutual Funds. It is a way that lets the investor purchase units on a particular date of choice every month that helps you implement a systematic saving plan.

The amount that you need to invest depends entirely upon you, and you can also choose the intervals at which you want to spend the money beforehand. The funds can be invested accordingly, like weekly, monthly, or quarterly, etc.

This method is efficient, and it also incorporates the habit of saving money in the investor. Here, we will be talking about the best mutual funds for you to invest in. Thus, slowly and steadily, you can build a respectable fund for any emergencies in the future.

Best Performing SIP Mutual Funds

There are numerous mutual funds for SIPs available in the market, and it becomes challenging for the investor to choose the best one for himself.

Based on various categories, we have come up with a list of best mutual funds for SIP in large-cap, small-cap, multi-cap, and equity-linked saving schemes. Some of these are:

Large-Cap Schemes

These schemes are for the firms that have a market capitalization of over Rs. 20,000 crore. These are best for the investors who want to accommodate wealth without exposure to a volatile market. Some of these schemes are

Aditya Birla SL India GenNext Fund (G)

ICICI Pru Dynamic Plan (G)

Reliance Growth Fund (G)

SBI BlueChip Fund – Reg (G)

Tata Equity P/E Fund (G)

These are some of the top performing mutual funds in India which you can invest the money in as SIPs.

Mid-Cap Schemes

Mid-Cap schemes are where the investment is made in companies that have a market capitalization ranging from Rs. 500 crore to Rs. 10,000 crore. These schemes are for the people that have a high-risk appetite and want to grow their investments fast. Some of these schemes are:

Aditya Birla SL Small & Midcap Fund (G)

Edelweiss Mid and Small Cap Fund – Reg (G)

Franklin India Smaller Cos Fund (G)

L&T Midcap Fund – Reg (G)

Canara Rob Emerg Equities Fund – Reg (G)

If you are looking to invest in midcap schemes, then these are undoubtedly the best mutual funds for SIP.

Multi-Cap Schemes

These are the particular schemes made for investments in stocks of small, mid, and large companies. These are best for the investors that have a low-risk appetite. Some of these schemes are:

Aditya Birla SL Advantage Fund (D)

Aditya Birla SL Equities Fund (G)

HDFC Capital Builder Fund (G)

Kotak Opportunities Fund (G)

Reliance Top 200 Fund (G)

SBI Magnum Multicap Fund – Reg (G)

Sundaram Rural India Fund (G)

Multi-cap schemes are one of the best mutual funds and can ensure high returns if you play your cards well.

Equity-Linked Savings Schemes

One of the most exciting schemes that provides the investor with an equity centric mutual fund that can be useful for saving tax and building wealth. Some of the best schemes under this are:

Aditya Birla SL Tax Plan (D)

Invesco India Tax Plan (G)

Reliance Tax Saver (ELSS) Fund (G)

Tata India Tax Savings Fund – Reg (DP)

L&T Tax Advt Fund – Reg (G)

DSPBR Tax Saver Fund – Reg (G)

Why investment in an SIP is the right choice?

There are several benefits that you get to have when you invest in SIPs. Besides being a disciplined way of saving money, there are other reasons as well that make it an attractive investment option. Some of these reasons are

SIPs can be very helpful in averaging the cost return ratio. This will help the investor in a volatile equity market purchase more units, thereby gaining more profit.

Because of the compound interest, even a small amount of investment can result in high returns over long periods.

The investments that you make through SIPs can be as low as Rs. 500, and thus, they are not at all heavy on your pocket.

The deduction of the amount is made automatically from your bank account, and thus, you don`t have to worry about missing out any time.

You can withdraw the money anytime you want.

SIPs eliminate the issue of timing of the market. Even if there are highs and lows, a long term plan will give you returns that will be best for you.

How to get the maximum returns from SIP?

Here are some of the methods that you need to employ to get the best returns from your SIP:

Understand the objective of your investment and have a precise aim at your desired goal.

Calculate the amount of savings that you need to have to achieve your desired goal.

According to your income and spending, decide the amount that you can easily invest every month to get the best returns. Make sure that the amount is feasible for you to spend.

You need to comb the market and look out for those SIPs that have performed the best in the last few years. Once that is done, you can choose the SIP that suits you the best.

You need to complete the required KYC documentation process along with the submission of cheques and other suitable forms. Then, you are good to go and start investing.

To get good returns, make sure you choose a long term plan.

To optimize your return even more, it is advisable to invest in multiple SIPs that will diversify your investments.

Conclusion

SIPs are one of the best ways of investment if you want to get high returns on a long term basis. We hope that this discussion has helped provide you with all the information related to the best mutual funds for SIPs!

#mutual funds #sip #rwadiwala

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decadentdefendorsoul · 2 years ago

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Meet The Top Mutual Fund Managers in India

Introduction

Mutual funds offer many benefits to investors.

First, you do not have to pick, buy, or sell stocks by yourself; the mutual fund manager does it for you.

Second, you do not have to calculate the net value of your portfolio manually since the fund manager calculates it, and you can see it in your dashboard.

Third, professional fund managers have many years of experience in the field, and by investing in a mutual fund, you get that experience for free.

If you're wondering how to find the best fund manager in India, you are in the right article. Move ahead to check the profile and performance of the five best mutual fund managers in India.

However, before beginning the journey, it is prudent to know that simply because you have chosen the best fund manager does not ensure sky-high returns from day one. Mutual funds generally follow a benchmark/index, and the performance of the same is vital for determining the performance of your mutual fund. Hence, before investing, you must analyze the fund’s investment philosophy and make an apt decision.

The Five Best Mutual Fund Managers in India

Here are the five top-performing fund managers in India in 2021:

1. Mr Shreyash Devalkar - Axis Mutual Fund

With seventeen (17) years of experience in equity research and money management, Mr Devalkar manages the top-performing funds of Axis Mutual Fund. He joined Axis AMC in 2016 and has been successfully managing funds like Axis Bluechip Fund, Axis Flexi Cap Fund, and Axis Mid Cap Fund. Before joining Axis AMC, he has served BNP Paribas, IDFC AMC, and IDFC Securities.

The schemes managed by Mr Devalkar has consistently outperformed the benchmark. Of the three schemes he manages, Axis Mid Cap Fund has provided maximum returns. While the benchmark return of the Axis Mid Cap Fund is 20.80%, the scheme has delivered an annualised return of 25.93% (3-yr period, as of 11/11/2021).

2. Mr Vaibhav Dusad - ICICI Prudential AMC

Mr Dusad manages two best-performing funds at ICICI Pru AMC. He has more than thirteen (13) years of experience in Indian equities and money management. The ICICI Pru Technology Fund is a category leader and has retained the number one position for ten successive years.

The ICICI Pru Technology Fund has consistently provided higher-than-benchmark returns. For instance, the fund delivered 41.44% returns against the benchmark’s 22.2% (3-yr period, as of 11/11/2021).

3. Ms Meeta Shetty - Tata Mutual Fund

Ms Shetty has over fifteen (15) years of experience in managing equities. Before joining Tata AMC, she has served HDFC Securities, Kotak Securities, Asian Market Securities, and Karvy Stock Broking. Her current designation is Senior Analyst/Fund Manager. She manages two top-performing mutual fund schemes at Tata AMC - Tata Digital India Fund and Tata India Pharma & Healthcare Fund.

Both schemes managed by Ms Shetty has outperformed the benchmark by a significant margin. The Tata Digital India Fund has provided returns of 39.47% vis-a-vis the benchmark of 22.2% (3-yr period, as of 11/11/2021). The Tata India Pharma & Healthcare Fund has generated returns worth 24.48% against the benchmark returns of 9.19% (3-yr period, as of 11/11/2021).

4. Shridatta Bhandwaldar - Canara Robeco Mutual Fund

Mr Shridatta Bhandwaldar heads the equity team at Canara Robeco AMC. He has a combined experience of fourteen (14) years. Before joining Canara Robeco AMC, he worked with SBI Pension Funds, Heritage India Advisory, Motilal Oswal Securities, and MF Global Securities. He manages Canara Robeco’sRobeco’s top-performing mutual fund schemes like Flexi-Cap Fund, Equity Hybrid Fund, Bluechip Equity Fund, Small Cap Fund, etc.

Almost all schemes managed by him have provided better-than-benchmark returns. For example, the Canara Robeco Flexi Cap Fund has delivered a 24.05% return against the benchmark return of 4.49% (3-yr period, as of 11/11/2021).

5. Mr Rajeev Thakkar and Mr Raunak Onkar - PPFAS Mutual Fund

Mr Rajeev Thakkar is the Chief Investment Officer and Equity Fund Manager at PPFAS Mutual Fund. He has more than 25 years of experience in investment banking, fixed income, broking operations, and PMS (Portfolio Management Services). With over ten (10) years of capital market experience, Mr Onkar is the fund manager for overseas investments. Mr Thakkar and Onkar jointly manage the Parag Parikh Flexi Cap Fund.

The Parag Parikh Flexi Cap Fund has been a trendsetter in it category. It has provided returns of 31.75% vis-a-vis the benchmark returns of 21.38% (3-yr period, as of 11/11/2021). The fund has consistently earned accolades for taking a unique investment approach.

The EndNote

Now that you know about the best fund managers in India, it’s time to select the funds managed by them and invest in a disciplined way. While selecting the best manager, you must look beyond short-term returns and evaluate factors like investment strategy, risk-adjusted returns, performance against the benchmark, entry and exit load, and expense ratio.

5paisa is the most comprehensive source of quality information and low-cost brokerage. You can find the top-performing mutual fund scheme at your fingertips and invest within five minutes. Check this link to know more.

#mutual funds #mutual funds meaning #mutual funds india #mutual funds benefits

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imperialmoney01 · 3 years ago

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Imperial Money Offers the Simple, Free, and Most Convenient Way of Investing In Mutual Funds

It’s all just on fingertips, No paperwork, No hassles, Invest in the best mutual funds using Imperial Money. All Indian mutual funds are available in one single app. In Imperial money, you can start SIP, lump-sum investment for free. Switching of the funds from one fund to another fund and Systematic withdrawal plan or funds from liquid to equity or equity to liquid while re-balancing the portfolio you can just do it here anytime anywhere you are.

Investing becomes easy with your fingertips

· Get Sign up in minutes,

· One time KYC process within the app

· Buy, Sell, Shift mutual funds within the fund family.

· Buying a Systematic investment plan or doing the STP or SWP is just simple and easy.

Invest in all mutual funds online for free

· You do not require paying any additional cost for buying funds from Imperial money!!

· Most researched Mutual funds baskets are available.

· Sell anytime – Money comes to your bank account directly

· Learn to invest in mutual funds with as low as Amount of Rs.500/- concerning your objective and planning of life the portfolio are the builder for giving one the states of art experience

Mutual Fund Investing for You:-

· Simple design, Easy to understand

· Made for beginners and experts both

· Financial planning you can do it here itself Invest in the researched and ready-made basket of mutual funds recommended by experts with years together experience bringing for you.

· Latest finance news and insights, notifications

· Most important is the teams of experts are available here to help you out with any type of Issue.

Steps After Imperial Money App Install:

Verify your KYC

If the KYC is not available then use the following process

PAN/KYC

Profile set up

Invest in sip or lumpsum

Need of KYC for mutual funds as per the process of the Government of India for making a Tax saving funds (ELSS mutual funds):

Invest in tax-saving mutual funds to get tax exemption under section 80c. The total exempt limit is 1.5 Lakhs. Invest in equity mutual funds – small-cap, large-cap, mid-cap, multi-cap – for the long term and higher returns. Check out SIP Calculator to know how many returns you can make.

Safe & Secure: We use the latest security standards to keep your data safe and encrypted.

IMPERIAL MONEY is secure and does not store any information on your device or SIM card. Download and stay connected to your Mutual Fund investments always. Imperial Money uses NSE (National Stock Exchange) for transactions. We support all RTAs – CAMS, Karvy, and Franklin.

Following AMC’s are supported on IMPERIAL MONEY Mutual Fund App:

SBI Mutual Fund, NIPPON Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Aditya Birla Sun Life Mutual Fund, Franklin Templeton Mutual Fund DSP Mutual Fund, Kotak Mutual Fund, Mirae Asset Mutual Fund, Axis Mutual Fund Motilal Oswal Mutual Fund, L&T Mutual Fund, IDFC Mutual Fund, INVESCO Mutual Fund UTI Mutual Fund, Sundaram Mutual Fund, Tata Mutual Fund, ITI MUTUAL FUND, BNP PARIBAS MUTUAL FUNDS, EDELWEISS MUTUAL FUND, HSBC MUTUAL FUND MAHINDRA MUTUAL FUND, PGIM MUTUAL FUND, PRINCIPLE MUTUAL FUND UNION MUTUAL FUND

IMPERIAL MONEY – KEY FEATURES

Access your investments across multiple Mutual Funds through a Single Gateway; No more managing multiple PINs, Folios numbers, log in ids,

Mobile PIN & Pattern login– Simplified your Imperial Money App login process now. Just pick your preferred login methods – Mobile PIN, Pattern or Password right away

Paperless Investing: Quick & paperless account creation and instant Activation. Within a couple of minutes, you are all set to ride the new wave of investing.

Instant SIP: Once you are registered. It takes less than a minute to start a SIP.

SIP Calculators: With the help of our calculators plan your investment needs to achieve your Financial Goals. Happy investing with Imperial money!!!

Happy Investing!!!

#mutualfunds #investment #mutualfundadvisorinnagpur

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reliancesmartmoney · 4 years ago

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But you cannot play a blind game while investing in SIP until and unless you have a Midas touch because investing in SIP without research can take you closer to losses. So, we are here to ease your research game. By the end of reading this article, you will know which are the top 10 mutual funds for SIP to invest in 2021, best SIP plans for 500 per month, best SIP plans for 2021, and much more.

So, let’s begin!

If you are a new to the investment game then this is going to be a fruitful read and if you are already familiar with SIP then this can be a fruitful insight for you. So, below are the best SIP to invest in 2021

Top 10 mutual funds to invest in 2021 for SIP

TATA Digital India Fund

Aditya Birla Sun Life Digital India Fund

ICICI Prudential Technology Fund

Franklin US Opportunities Fund

Mirae Asset Tax Saver Fund

Mirae Asset Emerging Bluechip Fund

Franklin India Technology Fund

SBI Small Cap Fund

SBI Technology Opportunities Fund

Nippon India US Equity Opportunities Fund

Now that you know which are the best SIPs to invest in 2021, let us also tell you what factors you should take into account while selecting the best SIP because your research game needs to be on top before making an investment decision.

You need to be clear with your financial objective when it comes to investing in an SIP. You can also take the help of a SIP calculator which is easily found online to make a forecast of your investment.

Don’t close your eyes and select. You cannot take the risk of investing without knowing the fund house because if the fund house fails to deliver, you will have to bear a heavy loss.

Monitor before investing. It is better to know the performance of the funds you are looking to invest in, for better returns.

Make sure you don’t forget to consider the expense ratio. Higher the expense ratio, costlier the fund and lower the expense ratio means it is a good buy.

Here are a few mantras that will help you choose the best SIP to invest in 2021.

There are many myths around investment in SIPs and one of the most common myth is that you should invest big but that’s not true. Many new investors hesitate to invest in SIPs thinking what if they lose all their money. So, to bust this myth and also give new investors an easy way through, here are the best SIP plans for Rs.500 per month.

Nippon India Large Cap Fund

SBI Bluechip Fund

Axis Bluechip Fund

DSP Top 100 Equity Fund

ICICI Prudential Bluechip Fund

In case you are a new investor, or you are not comfortable investing huge amounts, these funds can be your go-to option as they allow investors to start an SIP with minimum amounts.

Now that you are well-versed with the do’s and don’ts of investment in SIPs and know the best SIP plans of 2021 in India, we hope that you will be able to make the right decision to choose the best SIP to invest in 2021.

#Systematic Investment Plans #sip #best sip to buy #start sip

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superdragontyrant · 4 years ago

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When the Indian government requires funds or loans for undertaking strategic development programs, it discusses this requirement with the RBI. The RBI serves the government as the banker and principal lender. Therefore, after borrowing from other institutions such as insurance companies and banks such as SBI, the RBI loans money to the government. In exchange for the loan, the RBI issues fixed term government securities that are subscribed to by a gilt fund mutual manager. This gilt fund returns securities from the government upon maturity and receives money in return.

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jayantharde · 5 years ago

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Invest Online in SIP Mutual Funds Plans in India 2020

A systematic investment plan (SIP) is an investment option provided to investors by many mutual funds, enabling them to invest small amounts on a regular basis, rather than lump sums. Investment level typically occurs regularly, monthly, or quarterly. Through SIPs, investors regularly debit a fixed sum of money through bank accounts and invest in a specified mutual fund. A number of units are assigned to the investor according to the present Net Asset value. Every time an amount is spent, the investors account earns more units. The strategy promises to free the investors by dollar-cost average from speculating on volatile markets. Since the buyer gets more units when the price is low, and fewer units when the price is high, the average cost per unit will be lower in the long run.

SIP appears to be encouraging responsible investment. SIPs are flexible; investors can stop investing in a plan at any time, or choose to increase or decrease the amount of investment. Retail investors who do not have the money to follow the successful investment are typically advised to SIP.

A mutual fund is a professionally run, open-end investment fund[1] that pools money from several investors to buy securities. Those investors may be institutional or retail in nature. The concept is usually used in the United States, whereas the SICAV in Europe (‘investment company with variable capital’) and the open-ended investment company (OEIC) are used in similar systems around the world.

Compared to direct investment in individual shares, mutual funds have advantages and disadvantages. The mutual funds’ benefits include economies of scale, diversification, liquidity and skilled management. Such, however, come with fees and expenses for the mutual funds. Mutual funds are often known as money market funds, debt or fixed-income funds, mutual or equity funds, hybrid funds or something similar by their core investments. Funds can also be known as index funds, which are passively managed funds matching an index’s results, or are actively managed.

To know more about Mutual Fund, you can visit our website

https://www.jayantharde.com

or contact our representative at

+91 712 2282029

or meet us at 51, Gurukripa, Old Sneha Nagar, Wardha Road, Nagpur – 440015.

Why Invest in SIP?

There are many reasons as to why investors prefer investing in mutual funds through SIP, the benefits of SIP are listed below:

Rupee Cost Averaging:

SIP investments promote phenomenon called Rupee Cost Averaging. Let’s see first, to understand it, how mutual funds are purchased and kept as investments with an example: in October 2018, Mr. Anand has ₹60,000 on hand to invest into a mutual fund scheme. He has two options: lump sum or SIP. >> Lump sum: In October he wants to spend it all in one go. He goes online, signs up with an online investment platform for the mutual fund and buys ‘Units’ of a fund in return for his money. Such units of ‘mutual funds’ reflect his ownership of the fund. Let’s say that the NAV was ‘200’ in October, and Mr. Anand got 300 units for his investment of some 60,000 lump sums. >> SIP: In the same case where the NAV is ‘200’ in October. Mr. Anand bought 100 units for around 20,000 units. The NAV rose to ‘250’ in November and only 80 units were fetched by Mr. Anand’s next investment of some 20,000-for the same amount. The NAV fell to ‘100’ in December, and he gets 200 units from his ~20,000. So through SIPs, Mr. Anand’s ₹60,000 has bought him a total of 380 units only because of the fluctuating market.

Minimizes risk:

Investing small sums on a monthly basis instead of one big amount at a time means the investments can be stopped at any time the investor wishes. The investor may simply avoid investing in the rare and unfortunate case that a high-performing fund has a change of fund manager, or a risky investment doesn’t pan out well, or that the fund produces below-average returns over an extended period of time. The SIP can be stopped easily and the investment can be made into another well-performing fund to recover any negative returns.

Compounding:

Back to the investment itself, earnings in a mutual fund scheme invested by SIP are added, thus increasing its value. Since subsequent investments are made over the course of the investment period, the overall value will continue to rise by adding earnings to itself to allow greater growth.

Budgeting:

It can not be understated how critical proper periodic financial planning is. Many would-be investors earn more than necessary to invest and multiply their money but don’t save enough to invest because of insufficient financial planning. Strict monthly budgeting will allow huge amounts to be obtained with very little investment. Systematic investment strategies with standing guidance in one’s bank account will take to a whole new level the old maxim ‘a penny saved is a penny won’.

Financial discipline:

An individual can create financial discipline by ensuring that an investment has to be made every month. It is nothing but being careful and attentive when it comes to dealing with one’s wealth-a quality that is largely absent in modern India. Usually, a typical salaried corporate employee between the ages of 25-30 learns way too late that he/she spends too much on non-vital and essentially needless stuff daily. When this understanding arises, saving and spending on only the basics are given more priority. With a Drink, optimistic spending is classified as a month-to-month recurring investment. Through allocating funds separately for this, the remaining revenue is split in a calculated and controlled manner among essential expenses.

Convenience:

Investors have no need to go out of their way to invest in SIPs. Every month, the amount is automatically deducted from the bank account of the investor at a given date. In an efficient and detailed dashboard like the one in the FundsIndia mobile app, everything can be tracked online, the status of the investment, its returns being generated etc. Investors may also simply sign and send post-dated checks to ensure that investments are made at the appropriate investment pace. To know more about SIP, you can visit our website https://www.jayantharde.com or contact our representative at +91 712 2282029 or meet us at 51, Gurukripa, Old Sneha Nagar, Wardha Road, Nagpur – 440015.

Best SIP Plans to Invest

SBI BlueChip Fund Growth

Franklin India Equity Fund Growth

Mirae Asset India Equity Fund Growth

HDFC Mid-Cap Opportunities Fund Growth

ICICI Pru Bluechip Fund Growth

Source: https://hardejayant.blogspot.com/2020/04/invest-online-in-sip-mutual-funds-plans.html

#life insurance #mutual funds #sip investment #sip investment tips #balanced mutual funds #Smallcap Funds

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mysiponline-blog · 6 years ago

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Performance Study of SBI Magnum Midcap Fund by MySIPonline

SBI Magnum Mid-Cap Fund has been trying hard to offer good returns to investor. The fund has been offered by SBI Mutual Fund, who has shown many ups and downs till now. The financial analysts of MySIPonline has researched about the fund and its performance, whose details have been provided below:

About SBI Magnum Mid Cap Fund:

The fund was launched in the year 2005, has the AUM of 3,521 Cr as on Jun 30, 2018, with an expense ratio of 2.03% as on May 31, 2018. It is an open-ended scheme, invest 97.33% in equity, equity-related resources and 3.03% in debt instruments.

The average market capitalisation of the fund is Rs 10,903.47 Cr as on July 13, 2018, which is invested in the following ratio across full market capitalisation.

5.39% in large-cap,

76.88% on mid-cap, and

17.72% in small cap.

Currently, the fund is investing in 45 companies of diversified sectors, which include finance and banking, healthcare, engineering, construction, chemical, metal sector, etc.

Past Performance Analysis:

All these years, SBI Magnum Mid Cap Fund has tried hard to beat its benchmark, i.e., NIFTY Midcap 50 and category. Its returns since launch are 16.15%. The trailing returns of the fund for the past three, five and seven years was 6.54%, 23.89%, and 18.10%, respectively.

On the basis of returns of the past three years, the fund has generated negative alpha of -6.81% as calculated by the financial experts of MySIPonline as on June 30, 2018. It has under-performed all the compounded annualised growth returns except for the 7 years returns.

The annualised returns of the fund for the year 2014 was 71.94%, 14.92% in 2015, 4.98% in 2016 and 33.49% in 2017. In the year 2015 and 2016, the fund has outperformed its benchmark, but then again was below the benchmark in the year 2017.

Fund Manager:

SBI Magnum Midcap Fund has been manged by Ms Sohini Andani since July 2010. She invests in various companies with her high-convictions. She follow the blend of growth and value investing, with the bottom-up approach to pick any company or stock. She use to keep track of IT and banking sectors for investing in these.

She has the rich experience of 23 years. She joined SBI fund management in the year 2007 as the head of research and promoted to portfolio and fund management later. She is a Chartered Accountant by profession and graduated from Mumbai University.

Investors’ Suitability:

SBI Magnum Midcap Fund growth is a volatile fund, which is suitable for the investors who have an appetite of tolerating a moderately high-risk. You must invest in the fund for at least three to five years, as it offer investors a long-term capital appreciation.

The NAV of SBI Magnum Midcap Fund G is Rs 73.2316 as on July 13, 2018. The fund has been underperforming currently, but it has the potential to outrun its index and peers. If you want to invest in the fund and want more details, connect with our experts at MySIPonline via call or email.

#SBI Magnum Midcap Fund #sbi midcap fund #sbi magnum midcap fund nav #sbi magnum midcap reg fund g #sbi magnum midcap fund g #sbi magnum mid cap #sbi midcap fund nav

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amanjaiswal08-blog · 6 years ago

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What Is A SIP?

What is a SIP?

“Little drops of water make the mighty ocean”

An SIP enables you to invest in mutual funds in a systematic, automated fashion. If you’re new to investing, it’s a good idea to stick to a monthly SIP since you probably get your salary paid on a monthly basis.

For some investors who are afraid of long term commitments like PPF or Insurance plan, SIPs are the answer. They are flexible:

SIPs are done in open-ended funds where the investors can invest and take out the money anytime.

There is no fixed tenor for running SIP. Once the SIP tenor is fixed, it can stopped in between or could be continued even after the tenor by placing the request with respective mutual fund company.

Full and partial withdrawal is possible during or after the SIP tenor. The SIP amount can be increased or decreased.

The SIP amount can be increased or decreased.

Through a simple Google search, you can easily pull up all mutual funds in India and their historical returns. Ensure that the mutual fund(s) you select meet the following criteria:

The mutual fund has been in duration for at least 5 years (the longer, the better).

The “Fund Family”, or Fund House, is well reputed. In general, if you can recognize the Fund Family (such as HDFC, Reliance, SBI, Birla Sun Life), you are probably good to go.

Ideally, the SIP is in conjunction with the bank you’re already banking with. Contact your relationship manager at your bank. He/she can get you set up.

Is SIP safe or not?

SIP is a very safe method to invest in mutual funds. If you invest in a mutual fund lump sum, depending on the market condition, you could end up paying a very high price for a mutual fund. To avoid this, you should invest in mutual funds when the markets are not overvalued. This obviously requires a good knowledge of the markets. This is called timing the market.

Can SIP be stopped?

Yes. Unlike fixed deposits (FD) and recurring deposits (RD), you can stop an SIP any time you want. After stopping paying for an SIP plan, you can either choose to redeem your money from the mutual fund or continue to remain invested in the fund.

If you use SIP to invest in tax saving ELSS mutual funds, you can save tax too. You can claim tax deductions of up to ₹1.5 lakhunder Section 80C by investing in ELSS mutual funds.

Can SIP amount be reduced/increased?

The procedure to do so is very complicated. But there is a solution to this problem. You can simply start a new SIP in the same fund with the increased amount.

Can SIP be started online?

Yes, you can easily start an SIP online. To start an SIP online using Wealth Bhai, make sure you have signed up on wealthbhai.com . Upload necessary documents (PAN, address proof, and bank statement) and then choose a mutual fund you want to start an SIP in. Go to the mutual fund page on wealthbhai.com and follow instructions.

Does SIP have a lock in period?

If you are investing in an open-ended mutual fund, there will be no lock-in period for your SIP as well. It completely depends on the mutual fund you invest in. Some mutual funds, do have a lock-in period. ELSS mutual funds have a lock-in period of 3 years. Many other mutual funds have lock-in periods too. Mutual funds that have lock-in periods are called close-endedmutual funds.

Can SIP save tax?

If you use SIP to invest in tax saving ELSS mutual funds, you can save tax too. You can claim tax deductions of up to ₹1.5 lakhunder Section 80C by investing in ELSS mutual funds.

Does SIP have exit load?

The exit load of an SIP depends entirely on the mutual fund. If the mutual fund specifies an exit load for a period, then there will be an exit load on the SIP also. Most equity funds have an exit load of 1% if redeemed before a year from investment and no exit load if redeemed after a year. The exit load is calculated upon the value being redeemed.

Is SIP better than RD?

SIP has the capability to give much higher returns than RD. The return you get on your SIP depends on the mutual fund you invest in. There are debt mutual funds that are considered low risk and then there are equity mutual funds that are considered high risk. Unlike RD, the rate of return isn’t fixed in case of mutual funds.

Is SIP good for long term?

Yes. In fact, it is better to invest in SIP for the long term. Instead of waiting and accumulating money to invest, you start investing whatever amount you are able to save. This way, your money is always invested.

Is SIP and mutual fund the same thing?

SIP is a method used to invest in mutual funds. You can invest in mutual funds in two ways: lump sum and SIP. When you invest lump sum, you put in a large amount of money in a mutual fund in one go. In SIP, you invest smaller amounts of money on a regular basis – usually every month.

Which SIP to invest?

Which SIP you invest in depends on your needs. If you are willing to take risks, you can check out small and mid cap mutual funds. On the other hand, if you want moderate risk, you can check out large cap mutual funds. You can also check out debt mutual funds if you want to be exposed to very low risk.

Learn all you need to know about SIPs here.

The Power of an SIP

Suppose you set aside 10% of your monthly salary towards an SIP, and your monthly salary is Rs. 60,000. A cursory glance at some of the largest mutual funds in the country shows that many have consistently outperformed the overall market over a large span of time. For example, one of the largest mutual funds is the SBI Blue Chip Growth Fund. It has over 1000 Cr. in assets and launched the fund in June of 2006.

What are the benefits of SIP?

Estimated returns from SIP into an Equity Mutual Fund (at an assumed rate of 12% p.a.)

The best time to invest is… regularly.

If you invest smaller amounts regularly over a period of time you will buy your investments at an average price. You get to take advantage of any market dips (and pay a lower price) and at the same time reduce your risk of buying just before a market fall.

If you wait to save up large lump sums to invest you potentially risk :

a) Missing out on compound return and, b) Being more impacted by short term market movements.

Ultimately, if you have a long-term investment mindset dollar cost averaging can reduce anxiety about losing money when you invest. The only downside is that if markets don’t dip, you’ll end up buying higher and higher but at least you’ll be making a profit on your earlier purchases.

Happy Investing!

Visit:www.wealthbhai.com

#mutualfunds #investment #SIP #GROWYOURMONEY

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wroffle-blog · 7 years ago

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New Post has been published on https://wroffle.com/mutual-funds-glossary/

Mutual Funds Glossary

List of commonly used terms in context of mutual funds. You can use this as a glossary to look for any term. you want to learn.

Term Description 80C Section under Income Tax Act that defines exemptions for income tax. AMC Short form for Asset Management Company – the company that runs a mutual fund. Examples are HDFC Mutual Fund, ICICI Prudential Mutual Fund. Annualised Returns Returns you would make if investments were made for one year. If you invest for less than a year or more than a year, they are aggregated to one year. Arbitrage Funds Arbitrage Funds are special types of mutual funds that invest in equity securities but at the same time take an equal and opposite position in derivatives of these equity securities. These funds effectively give returns similar to liquid funds and risk is also similar. Also, these funds are taxed like equity funds and hence Zero tax post 1 year. Asset Allocation Process of allocating your funds across different assets. Assets are things like equity, debt or gold. We can further classify an asset like equity into large cap, mid cap or small cap. AUM Short form for Asset Under Management. The total fund a mutual fund scheme holds for investments. Average Maturity Weighted average of maturity (years between today and the final payment date of a debt security, at which point the principal is due to be paid) of all debt securities held by the fund. Balanced Funds Balanced Funds, also known as Hybrid Funds – Equity oriented invests in a mix of debt and equity. Benchmark Something you can compare your returns against. Typical benchmarks are Sensex and Nifty. But then there are a lot of them depending on the fund you consider. Brokerage The fees you pay to your broker for letting you buy and sell your investments. Credit Rating All debt issued by companies or government is rated by independent rating agencies based on the capacity to pay back. Example AAA rated debt is good. BB is not good. Crisil Crisil is a rating agency that rates mutual funds and debts issued by companies. Debt Funds Debt funds are mutual funds investing in debt instruments. Direct Funds Type of funds you do not buy from distributors. They are bought directly from AMCs. Dividend Schemes Mutual fund schemes that provide regular dividends to its investors instead of putting the profits back in the equity or debt. ELSS Short for Equity Linked Savings Scheme. Also known as tax saving funds – special mutual funds that are exempt from tax under section 80C. Equity Equity means stock of a company. Buying equities is same as buying stocks of a company. Equity Mutual Funds invest in stocks of public listed companies ETF Short form for Exchange Traded Funds. ETFs are like mutual funds but traded on stock exchanges and people can buy or sell them like stocks. Exit Load When you sell a mutual fund, exit load can be applied for certain schemes. It can be as high as 1% for some schemes. Expense Ratio Expressed as a percentage of your investment, this is the money you pay each year to the fund house for managing your money. Face Value Notional value of any security on which dividend, share capital, etc are calculated. Not very important to make investment decisions Fund Manager Fund manager is a person who decides where to invest your money in the mutual fund. Performance of a mutual fund largely depends on its fund Manager Fund of Funds A fund that invests in a portfolio of other funds. Also, knows as a multi-manager investment. Most of the global mutual funds are Fund of international funds. Gilt Gilt Funds are mutual funds that invest only in government bonds (debt). They are good for risk averse and conservative investors who wish to invest indirectly in secure government bonds. Gold Funds Gold Funds are mutual funds that invest in various forms of gold. It can be in the form of physical gold or stocks of gold mining companies. Growth Plan Growth plan means that any dividend that may be paid out by the stocks in the mutual fund will be reinvested for further growth. Holdings Holdings are the contents of an investment portfolio held by a mutual fund Index Funds An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a market index. Investment Objective This is the objective stated by the AMC for this mutual fund. AMC will operate this mutual fund in this manner only. But most of these objectives are very vague and hence doesn’t tell you much about the intent of the AMC. KYC Know Your Customer is a mandatory requirement by SEBI for declaring identity and address proof for the purpose of investing Large Cap Large Cap is a category of equity fund that invests mostly in the companies with large market capitalization ~ 20,000 Cr or more Launch Date Its the date on which a Mutual Fund is launched, through New Fund Offer. Liquid Funds Liquid funds are such Mutual Funds that invest in money markets (FD etc.) with very short maturity and high credibility. Therefore these are almost zero-risk Mutual Funds Lock-in Period This is the period of time, from the date or investment, for which the investment cannot be withdrawn. Tax saving Mutual Funds have a lock-in of 3 years. Long Term A horizon of 5 years plus is considered to be long term in most of the discussion. Market cap Market capitalization is the market value of the publicly traded company. It can be calculated by multiplying the number of shares with the current share price. Mean Returns Mean returns are the arithmetic average of the returns earned by a fund over a period of time. It is also known as expected returns of the Mutual Fund Mid Cap Mid Cap is a category of equity fund that invests mostly in the mid-sized companies with market capitalization in the range 5,000 Cr to 20,000 Cr. Min Additional Investment Min additional investment, as the name suggests, is the minimum amount of money you can invest in the fund if you already have an investment in the fund. Min Investment Min Investment is the minimum amount of lump sum investment that the fund accepts as a first-time investment. Money Market Money market is the part of financial market where highly liquid and very short term maturities are traded NAV Net Asset Value. It is the value per share of a mutual fund or an exchange-traded fund (ETF) on a specific date or time. NFO New Fund Offer. A new fund offer occurs when a mutual fund is launched, allowing the firm to raise capital for purchasing securities. Investors may purchase units of a closed-end mutual fund in an NFO. Nifty Nifty is a major stock index in India introduced by the National stock exchange. The value of Nifty is the weighted average of the value of 50 selected stocks. Nominee Nominee is the person who receives the benefit in case of death of the concerned person. PAN Permanent Account Number is a 10 character alpha-numeric code issued by Income Tax department. PAN is mandatory for doing any financial transactions in India. Portfolio For an individual, a portfolio is a collection of financial investments held by the person. For a Mutual Fund, a portfolio is the current holdings of the fund in various financial securities. PSU Public Sector Undertaking is state or union government-owned corporates. Rating Rating is the score given to product after careful evaluation or assessment of securities based on multiple factors. Redeem Redeem means to withdraw the invested money by selling the mutual funds Redemption Redemption is an act of withdrawing invested money in a mutual fund Regular Funds Regular funds are the funds bought through an intermediary like advisor, broker or a distributor Returns Return is a profit or loss on an investment. It is basically the change in value/principle amount Risk Risk typically means uncertainty in an investment. It is the deviation from the standard or the expected value Risk-Free Rate Risk-free rate is a theoretical rate of return on an investment with no risk. We can use SBI 3 month FD rate as a proxy for risk-free rate RTA Registrar and Transfer Agent is agency appointed by a mutual fund to handle allocation/ redemption of mutual fund units. Sector Allocation Split of holding of mutual funds in various sectors like Financial Services, IT, etc. Sector Funds A fund that invests only in businesses that operate in a particular sector or industry. Because the funds belong to the same sector, such funds are not diversified. Sensex It is an indication of an overall stock market. It essentially a figure which indicates the relative price of 30 companies weighted on free float market capitalization. Base year of Sensex is FY 1979 and the base value if 100 Sharpe Ratio Its defined as Mean Returns earned in excess of risk-free rate per unit of risk (Std Dev). It’s a measure of risk-adjusted returns. It was developed by Nobel laureate William F. Sharpe Short Term Short-term is a period of time of less than 12 months. SID Scheme Information Document (SID) is which provides all information about a mutual fund. It’s generally a 50+ page document explaining everything. In some cases mutual fund issue a combined SID for a whole category. SIP Systematic Investment Plan (SIP) is a way of investing money in mutual funds at regular interval. Most famous frequency is monthly. SIP Minimum This is minimum investment amount you need to invest every month (SIP) in this mutual fund. This is decided by mutual funds Small Cap Small cap is a category of companies that have a market cap less than Rs. 3,000 Cr. Mutual funds that primarily invest in small cap companies is categorized as Small Cap Fund. Standard Deviation Standard Deviation (represented by the Greek letter sigma σ) is a measure that is used to quantify the amount of variation of returns from mean returns. STP Systematic Transfer Plan (STP) is a combination of Systematic Withdrawal Plan (SWP) and Systematic Investment Plan (SIP). In this money is redeemed regularly from one fund invested in another fund at the same time. It only works in same AMC funds. SWP Systematic Withdrawal Plan is an opposite of Systematic Investment Plan (SIP). In this money is redeemed from a fund at regular interval. Ultra Short Term Ultra Short Term are a type of Debt Mutual Funds that invest debt securities with Average Maturity of less than 1 year. UTR Unique Transaction Reference (UTR) No. is provided by the bank when you do a NEFT or RTGS transaction. XIRR XIRR is a modified form IRR (Internal Rate of Return) than help calculate overall returns when number transaction (Invest or Redeem) are more than two and at irregular intervals. The only way to measure the returns if you are doing a SIP or multiple transactions in a single fund is XIRR. Suspended Fund Mutual Funds that stop taking fresh investment via both SIP or Lumpsum are considered Suspended Funds like DSP BR Micro Cap. Units Units specify the extent of ownership one possesses in a mutual fund Folio Folio is a grouping of financial assets such as stocks, bonds, mutual funds etc. YTM Average interest rate to be earned by an investor at today’s market price, assuming that all debt securities (bond, loan, etc) will be held until maturity Modified Duration It is the sensitivity of debt securities to the interest rate. If Modified Duration is 1 and interest rate increases by 1%, the value of the debt securities will reduce by 1%. IFSC Code Short for Indian Financial Code System used to identify the particular branch of a bank for electronic funds settlement in India like NEFT and RTGS Biller Biller is someone or something that processes bills and payments ISIP Internet-based Systematic Investment Plan(SIP), which is a completely paperless way of setting up SIP Stocks Stocks are ownership certificates of any company Shares Shares are the stock certificates of any company Bonds It is a debt instrument in which the investor lends some money to an entity which borrows the funds for a defined period of time at a variable or fixed interest rate Open-ended Funds A type of mutual fund that does not have a limitation on a number of shares that it can issue Closed-ended Funds It is like a mutual fund that raises a fixed amount of capital through an initial public offering and which is traded like a stock on the stock exchange Global Funds A type of mutual fund, which invests in companies located anywhere in the world. Min Withdrawal The required minimum distribution is the minimum amount that should be withdrawn from your account every year. KIM Short for Key Information Memorandum which is another form of scheme information document, for the investors by mentioning the key sections of the offer document Indexation It is a technique to adjust income payments by means of a price index, which is used to maintain the purchasing power of the investors after inflation Income Funds Income funds are mutual funds, ETFs or any other type of fund that are used to generate an income for shareholders by investing in securities that offer dividends or interest payments Government Securities It is a bond issued by the government authority, with repayment upon maturity Securities A security is a financial instrument that represents some type of financial value Floating Rate Floating rate is an interest rate that shifts up and down along the rest of the market or on the basis of an index Equity Schemes A mutual fund that invests mainly in stocks are called equity schemes/funds AMFI Association of Mutual Funds in India is an industry standards organization SEBI Securities and Exchange Board of India is the regulator for securities market in India