When you need high return on investments with minimum risk, think of SIP
Posted: Jul 07, 2016
You will get many types of SIP mutual funds in the market. Some have lock in period of three years, usually the ones made for tax benefit. Some come with an additional insurance coverage. However, financial experts suggest taking the simpler ones. Minimum investment you can make in a SIP is Rupees1000. Earlier Rupees 500 SIPs were also in the market, but they don’t yield you better returns. So you can go for one starting from Rupees1000 - Rupees 5000, without hurting much your pocket and without sacrificing day-to-day goodies.A student can also save Rupees 1000-Rs. 2000 from his or her pocket money every month and invest in an SIP and can use it to repay his education loan. It is suggested that all parents should invest in SIPs to secure any contingent, immediate, sudden requirement of their children.So all those who can't afford a huge amount to enter into the markets and reap its benefit, SIP investment is the best solution. All good wealth management firms in Delhirecommend this option to their clients as a 'must have' in their financial portfolios.
Let us start from the start. You might be wondering why SIP or why mutual funds out of all investment options. There are many ideas of investment in many assents. Some ideas are like traditional bank savings account, recurring deposit, insurance plan, etc. But they give return of some limited level. Now, one of the investment options to invest in stock market funds is mutual funds. Mutual funds are created by many financial institute and brokerage houses. This money is invested in equity market in stock exchange. When we want high return on our investment, then there is an option of investing in stock market. But investing in stock market also means risk for common people. Many peopledo not have too much of risk appetite to invest in stock market. Then this institute collect money from all such type of people who want high return on investment with minimum risk. And this money is invested in market by special technician of these companies. And how much return they give is announced by them time to time and this value is called as NAV of that fund. If you invest in fund and current NAV and you get double NAV, then your money is doubled in this time. And there is no risk of loss to investor. This means it is safe to invest in SIPs and get high return on our investment too.
I write article On behalf of Wealthcareindia.com, a leading Wealth Management & Financial Planning Company in Delhi, offers Online Financial Planning, SIP Investment or SIP Mutual Funds services by Certified Financial Planner.