#sip vs stp vs swp

[gamepassofficial]

SWP क्या है | SWP देगा बिना नौकरी के सैलरी ज़िंदगी भर | SWP Vs SIP

सुनने में अजीब लग सकता है लेकिन है बात बिल्कुल सही बिना नौकरी के सैलरी बिना कामकाज किए सैलरी और यह सैलरी कब तक जब तक जिंदगी रहे तब तक और जिंदगी ना रहे उसके बाद भी और आपकी अगली जनरेशन की जिंदगी ना रहे तब भी अगली की अगली जनरेशन ना रहे तब भी और यह सब कुछ बिना काम किए हां बिना काम किए की बात कर रहा हूं इसका मतलब यह नहीं कह रहा कि इसमें इन्वेस्टमेंट शामिल नहीं है वन टाइम इस्ट शामिल है सिर्फ एक बार का…

[blogannie]

Various modes of investing in mutual funds

Mutual funds have emerged as one of the preferred ways for investors to create long-term wealth and achieve their financial goals.

Before thinking about making an investment in mutual funds, you must know about the following factors.

Risk vs Return

Decide on the mutual funds you want to invest in based on your financial goals and risk return appetite. The most important thing you must keep in mind regarding the investment of mutual funds is its types. For example, there are debt funds, equity funds,balanced funds, and the risk-return profile of each is different. Debt funds involve the least amount of risk and the returns are low. Equity funds involve more risk and have high returns. Balanced funds come somewhere in between.

Growth vs Dividend

While investing in mutual funds you have two options one is growth and the other is dividend. Shares announce dividends to the investors from time to time. If you choose the dividend option that dividend would be paid out to you. In the growth option, any dividends declared will be reinvested in the fund. A dividend option will be useful if you invest in the mutual funds for income and use it for day to day expenses. It is better to choose the growth option so that you can grow your capital.

Lump Sum vs SIP

Choose your method of investment. You can go with a lump sum investment if you have cash on hand. For example, if you get a bonus you can invest in mutual funds. Otherwise, investing through Systematic Investment Plan(SIP) is a better idea since you can invest small amounts, you can make the optimum use of cash and enjoy the benefits of Rupee cost averaging. This will introduce discipline in your investment.

Online or Offline

Decide whether you want to invest in online or offline. One all your central know your customer(CKYC) requirements have been met, you can invest online. Most asset management companies allow you to invest online through their websites.

Direct or Regular

You must decide whether you want to invest directly in the mutual funds or you can use an intermediary like HDFC banks. These intermediately offer more choice and you will be able to manage all your funds through one account. The financial consultants in Chennai help you choose whether you invest directly or regularly.If you wish to invest directly, you can approach each fund house and manage the funds individually.

How to find the right fund?

There are so many mutual fund schemes that are available in the market and finding the right one can be difficult. Once you decide on the type of mutual funds, you can compare returns online over several periods. You can also use mutual fund rankings to find out the best one.

Various modes of investing in mutual funds

Once you understand your risk preference and finalized the scheme on which you want to invest your money. It is important to understand the various modes of investing in mutual funds. The modes includes,

Single investment or lump sum investment.

Systematic Investment Plan (SIP)

Systematic Transfer Plan (STP)

Dividend Transfer Plan (DTP)

Systematic Withdrawal Plan ( SWP)

These plans are designed in such a way to help you choose the mode of investments that best suits your income and the investment goals.

Single investment or lump sum investment

If you look at avenues to invest in and earn returns, you can decide mutual funds that offer a good range of schemes to choose from. You analyze your risk preference, define your investment objectives, and start assessing individual schemes. Once you finalize the kind of scheme you want to invest in, the next question that comes to you is whether you want to invest the entire corpus together or not.

A lump sum investment has its own set of pros and cons. It creates a possibility of high returns if your timing of purchase is right and it can also expose your investments to high risks if the timing is wrong.

Systematic Investment Plan (SIP)

This is a perfect option for people with regular income who come under the working class. If you don't have any savings but you want to create wealth for your future expenses, then SIP is a boon for you. You can start investing from your savings of Rs. 500 per month if you choose SIP mode of investing in mutual funds.

This works in a similar way as recurring deposit where you deposit a fixed amount every month which gets added to your cumulative capital and earns compound interest. You can seek help from the mutual fund consultancy in Chennai to know about the SIP. In the SIP mode of investment, units are purchased based on the NAV of the scheme on the day of depositing the instalment.

Systematic Transfer Plan (STP)

If you have a corpus of funds which you cannot invest as lump sum amount or as SIP then a systematic Transfer plan is designed for you. STP helps you to invest in equities gradually by initially investing your funds in less risky options and systematically transferring funds from this scheme to a high return scheme from the same fund house. They utilize the benefits of investing lump sum without the additional risk by exposing your corpus to less risky funds and the benefits of SIP by transferring small amounts to high return schemes.

Dividend Transfer Plan (DTP)

In a DTP, the dividend can be reinvested in a scheme from a different asset class as compared to the scheme which generated the dividend. So if you have received dividend income from a debt scheme, then you can transfer it to an equity scheme. This works well for low risk investors who have invested in a debt fund. They can choose to transfer their dividends to an equity fund and create a possibility of earning high returns without exposing their capital to any risk.

Systematic Withdrawal Plan ( SWP)

A Systematic Withdrawal Plan ( SWP) ensures that you live a financially healthy life post retirement and never run out of funds. Through this plan you can pre-decide the amount of money you wish to withdraw monthly or quarterly to meet your regular expenses. The remaining investment continues to earn returns prolonging the longevity

of your funds.

Choose the right mode of investing in mutual funds to earn a high return.

Disclaimer: Trading and investments in Equities and Commodities are subject to market risk, there is no assurance or guarantee of the returns. These are the suggestions to make you familiar with the process. Get a word from an expert before investing.

[wealthbaba]

Difference between SIP, STP, SWP, and Flex STP

Difference between SIP, STP, SWP, and Flex STP

SIP vs STP vs SWP vs Flex STP, Know the difference. Mutual funds offer various ways of investing for an investor. An investor can decide the mode of investment based upon his requirements. These requirements may be the format of the time horizon of investment, the amount of money to be invested, and periodicity of investment – one time or on regular intervals. Here we present the difference…

[docconsultingltd]

SIP Vs STP Vs SWP: Top mutual fund investment strategies and their benefits - The Financial Express https://t.co/BR9Sx5FHLE https://t.co/cQpMXrYAsn

SIP Vs STP Vs SWP: Top mutual fund investment strategies and their benefits - The Financial Express https://t.co/BR9Sx5FHLE pic.twitter.com/cQpMXrYAsn

— Doc's Consulting LTD (@LtdDoc) January 29, 2019

from Twitter https://twitter.com/LtdDoc

[yesdivyastuff-blog]

Mutual Fund V/S Fixed Deposit Returns.

Fixed Deposit :

People often opt for fixed deposits (FD), considering them to be risk-free. The security of having money in the bank is apparently a significant factor and with FDs, it is highly unlikely that you will lose your money. However, with other factors at play, notably inflation and taxes, do FDs provide more bang for your buck?

Mutual Fund :

A mutual fund is not an alternative investment option to stocks and bonds, rather it pools the money of several investors and invests this in stocks, bonds, money market instruments and other types of securities.

Buying a mutual fund is like buying a small slice of a big pizza. The owner of a mutual fund unit gets a proportional share of the fund’s gains, losses, income and expenses.

Features of Mutual Funds

Allows one to take exposure to equity, debt or commodities(gold)

Industry regulated by Securities & Exchange Board of India (SEBI)

Payout of dividend or re-investment possible

Redemption can be instant, or between 1 to 3 days.

May/may not have exit loads

Features of Fixed deposits

Fixed rate of interest

Interest options to be payout at defined frequencies or at maturity

Auto-renewal possible

Can go from short tenures to long term (5 years or more at times)

Insured upto only INR 1 lakh.

Can have pre-mature withdrawal penalty.

A quick comparison: Mutual funds vs. Bank FDs…

Investing in mutual funds offer advantages:

✓Facilitates diversification; ✓The minimum investment amount required is low; ✓Offers economies of scale, translating into better returns for you; ✓Offers innovative modes of investing and withdrawing – Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs), Systematic Withdrawal Plans (SWPs), etc.; ✓You can tactically allocate your investible surplus; and ✓Your hard-earned money is professionally managed by professionals who hold years of experience in financial research and fund management.

As you can see, mutual fund returns beat fixed deposit interest by a wide margin in the bull market years, But what happened in the bear market years? The table below shows 5 year growth of Rs 10,000 investment, made at the end of various years from 2001 to 2008.

All investments made after 2003 (shaded in amber in the table above) had to go through bear markets of either 2008 or 2011 or both. Now, please take a look at the line “Capital Gain / (Loss). Investors with a five year horizon did not make a loss in the above example.

The investment decision of the investor should be governed by his or her risk tolerance and not risk appetite.

We have shown that if the investor remains invested for a sufficiently long time horizon, equity funds can give good returns despite difficult market conditions. To Invest in Mutual Funds visit :WEALTH BHAI

[personalfn-blog]

Bank FD Vs. Mutual Funds: Which Is Better?

Since the beginning of 2015, the Reserve Bank of India (RBI) has reduced policy rate by 175 basis points (bps). Consequently, banks, too, have reduced interest rates on Fixed Deposits (FDs). If inflation mellows down further, the rates are expected to drop lower. Such a scenario has got many investors, especially the ones averse to risk worried. They’re wondering where they should park their hard-earned money. One-year bank FD rates are currently in the range of 5.25%-7.00%, but if you’re placed in highest tax bracket (of 30%), a paltry sum is earned. This further gets eroded when inflation – which is hovering around 5.00% -- is accounted for over the past year. So, the effective real rate of return (also known also as inflation-adjusted return) has clearly become unimpressive. Therefore, many investors are exploring various investment avenues looking for better returns. A comparison is being made between bank FDs vs. mutual funds — although this is alike to comparing apples with oranges. Here are some points of distinction between the two investment avenues: Risk-Return: It is vital to recognise that investing in mutual fund schemes commands a higher risk vis-à-vis bank FDs (and small saving schemes). While the interest rate offered on bank FDs are pre-specified and fixed for the entire tenure, the returns on mutual funds may vary based on the market movement. Hence the disclaimer: “Mutual fund investments are subject to market risks, read all scheme related documents carefully.” Given the market-linked nature of mutual funds, the return potential hinges on market conditions and how efficiently the fund manager manages the portfolio. Usually, mutual fund schemes outscore during positive market conditions, and underscore bank FDs during negative market conditions. So you should consider your risk appetite while opting between bank's fixed deposits and mutual funds. Mutual funds unlike, bank FDs do not come with insurance and credit guarantee. DICGC provides guarantees an amount of up to Rs 1,00,000 per depositor per bank - for both principal and interest. Real rate of return: Over the long-term, mutual funds, particularly the equity-oriented ones are an effective in beating the inflation bug. Meaning, they hold the potential to clock a decent real rate of return (also known as the inflation-adjusted returns). But selecting the best or winning mutual funds is a critical task. Liquidity: Mutual funds have high liquidity; but, of course, it depends on conditions such as type of the scheme opted for – whether open-ended / close-ended, lock-in period, exit load, performance of the scheme, etc. Whereas, in case of bank FD liquidity is bound by the tenure of the FD. The option to prematurely withdraw a bank FD is of course available; but you would lose out a portion of your expected return, and a penalty is charged. Thus bank FDs offer medium-to-low liquidity.   Cost of investing: In case of mutual funds, cost of investing clearly depends on the category of mutual fund scheme you are investing in. While a liquid fund may have a low expense of up to 1% p.a., debt mutual funds may have anywhere between 0.50% p.a. to 2.25% p.a., and the expense of equity mutual funds may be up to 3.00% p.a. The expense ratio has a bearing on returns, as the return yields are post-expenses. On the other hand, bank fixed deposits offer an advantage on this parameter, as they do not levy any expense on the depositor. And you get the entire rate of interest promised by the bank.           Tax implication: This is an important aspect while choosing between mutual funds and fixed deposits. For mutual funds, the tax status depends on the category of mutual fund – equity or debt. Equity oriented mutual fund schemes if held for the long-term i.e. in Income-tax Act parlance over 12 months, offer a tax advantage to you, the investor, since Long Term Capital Gain (LTCG) tax is exempt. But if units of the equity scheme are held for the short-term i.e. in Income-tax Act parlance 12 months or less, Short Term Capital Gain (STCG) tax is levied @ 15%. On the other hand, your gains from long term investment in debt mutual funds (i.e. over a period of 1 year) is taxable @ 20% with indexation and 10% without indexation (whichever is lower); while your short-term capital gain from debt and liquid mutual funds is taxable as per your tax slab. In case of bank FDs, the interest is taxable as per your tax slab (i.e. as per marginal rate of taxation) irrespective of the tenure of the bank FD. Thus comparatively, investing in mutual funds is more  tax efficient than bank FDs.  

Notwithstanding the above, investing in mutual funds offer advantages:

✓Facilitates diversification; ✓The minimum investment amount required is low; ✓Offers economies of scale, translating into better returns for you; ✓Offers innovative modes of investing and withdrawing – Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs), Systematic Withdrawal Plans (SWPs), etc.; ✓You can tactically allocate your investible surplus; and ✓Your hard-earned money is professionally managed by professionals who hold years of experience in financial research and fund management.

How should you invest in mutual funds? You ought to choose the category of mutual fund schemes (equity and/or debt) and their type wisely, paying heed to your risk profile, investment time horizon, and the financial goals you’re striving to achieve; so that your asset allocation is done optimally. For instance, when you’re averse to risk, the investment horizon is relatively short (less than 3 years) and financial goals are approaching, a dominant portion of the investible surplus should be parked in debt instruments, where debt mutual funds can be considered. But here too, tread carefully and take into cognisance of the interest rate cycle. At present, if you hold a slightly high risk appetite and have a long time horizon of at least 3 years, not more than 20% of your entire debt portfolio may be allocated to long-term debt funds via dynamic bond funds (as they are enabled by their investment mandate to take positions across maturity profile of debt papers). In case you have a time horizon of less than a year and risk profile doesn’t permit, stay away from funds with longer maturities. If you have a short-term investment horizon of 3 to 6 months, you could consider investing in ultra-short term funds (also known as liquid plus funds). And if you have an extremely short-term time horizon (of less than 3 months) you would be better-off investing in liquid funds. Don’t forget that investing in debt funds is not risk-free. Those of you, who have a very high risk appetite or can afford to take risk, diversified equity oriented mutual funds, would be suitable. But take enough care to select to best or winning mutual fund schemes for your portfolio. Focus on mutual fund houses that follow strong investment processes and systems, and make sure you have a long-term investment horizon of at least 5 years and your financial goals too, are afar. It would be best to systematically stagger your investments.  Those who are new to equity investing prefer the mutual fund route by opting for balanced funds and large-caps. Moreover, prefer the SIP mode of investing, which will help you mitigate the risk better. Thoughtlessly investing or speculating can be hazardous to your wealth and health. If you need help to select winning mutual funds, or want to know the 6 ultimate secrets to beat the market by a whopping 70%, opt for PersonalFN’s Research Services. And if handholding is needed in the journey of wealth creation, don’t hesitate to seek the services of a Certified Financial Guardian, who is a mark of trust and respect.