Systematic investment plans are a passive investment instrument that allows you to invest in equity or debt by making regular monthly payments over time. The investments made through the SIP method usually have a lower cost than lump sum investments. In addition to this benefit, any dividend income generated by these investments is reinvested automatically into the plan. These plans are suitable for investors with a diversified portfolio who invest in mutual funds or stocks.
A SIP plan is also called an investment plan as it allows you to invest in various financial instruments over time. The amount invested every month is automatically debited from your bank account, which ensures that your investments are made on time without the need for you to monitor the markets constantly. Since SIPs are long-term investment plans that can last anywhere between 2-5 years, one needs to keep a close eye on the returns yielded by these investments. A series of articles has been planned about how one can profit from investing in equity and debt instruments through SIPs.
This systematic investment plan mutual fund is a diversified equity investment plan that uses a balanced approach to select equities. The fund has a minimum investment cap of ₹5000 for the first investment, and there is no lock-in period. It is easy to understand as you can choose to invest in a mix between debt and equity instruments.
It is a multi-cap fund, which means that it invests in companies of all capitalization sizes across various sectors of the economy, thereby reducing its risk from any one sector or sub-sector of the market. The management team has extensive experience in investing.
This fund is a balanced fund that invests in large-cap companies across various sectors of the economy. It uses an active approach to investing and can invest in equity instruments of various sizes. The minimum investment amount for this mutual fund is ₹5000, which makes it a low-cost option compared to other equity SIPs.
It invests on the price-book value and invests at least 80% of its value in stocks that are currently undervalued. It can also use stop-loss orders to take advantage of opportunities while reducing investing risk.
This systematic investment plan mutual fund invests in small, mid, and large-cap companies across diverse sectors and industries. The value of the underlying equity instruments is monitored regularly to ensure that market volatility is minimized. It uses a systematic investing approach, meaning that it makes smart investments while also allowing investors to diversify away from one investment sector or sub-sector of the market.
It invests in large companies and allows investors to invest in smaller ones through various stock holding limits. It offers a range of equity SIP mutual funds which are suitable for various financial objectives and risk levels.
Before investing in SIP mutual funds, read our prepared content. These are fundamental tips to not put your money at risk and avoid future frustrations. Systematic investment funds can offer interesting opportunities for investors. Diversity is one of the advantages of this type of investment.
But do you know what to evaluate before investing in mutual funds? Answering this question is essential for making efficient decisions regarding your investment portfolio. After all, you must know how to find the best alternatives for your goals.
We want to help you in this mission! Therefore, we have prepared factors that should be considered before choosing SIP mutual funds to invest in. Check out!
Know your needs- Before investing in a systematic investment plan, you must assess your financial needs. It can be a good choice if they are focused on investing in stocks. If instead, you are looking for funds that offer long-term investment using investments with a low entry point, then stocks may not provide the best solution.
Investing actively-It is very important to invest regularly and do intelligent projects with your systematic investment plan. You should familiarize yourself with the fund’s objectives to know if you are comfortable investing in them over a longer term or if you need something more flexible and fast-moving.
Evaluate how the portfolio is performing after some time-It is important to follow the performance of a fund’s portfolio not only in the first few years but also in the middle and final periods. This will help you know if you have made good choices and what alternative might better suit your needs.
Expand according to your risk tolerance-Knowing what you are investing in is essential to making good decisions. If you have a higher risk tolerance level, you can opt for funds that invest in more aggressive assets, such as equity funds.
Diversify your portfolio- When investing in systematic investment plan funds, do not forget to diversify your portfolio to reduce the risks associated with investing in one asset. Diversification also allows you to take advantage of opportunities offered by some particular markets or assets. Therefore, your investment portfolio will achieve better returns and also lower the risk associated with a single investment option.
Performance Of Canara Robeco Bluechip Equity Fund- The systematic investment plan seeks to offer capital appreciation. It uses an active approach to investing, meaning that it makes smart investments while also allowing investors to diversify away from one investment sector or sub-sector of the market.
It invests in stocks of large-capitalization companies that have reasonable valuations and are currently undervalued. But it can also invest in equities of medium and small-capitalization companies.
Performance Of Baroda BNP Paribus Large Cap Fund- This fund is a balanced fund that invests in large-cap companies across various sectors of the economy. It uses an active approach to investing and can invest in equity instruments of various sizes.
It invests on the price-book value and invests at least 80% of its value in stocks that are currently undervalued. It can also use stop-loss orders in order to take advantage of opportunities while reducing risk while investing.
Performance Of PGIM India Mid Cap Opportunities Fund- This systematic investment plan mutual fund invests in small, mid, and large-cap companies across diverse sectors and industries. The value of the underlying equity instruments is monitored regularly to ensure that market volatility is minimized.
When it comes to investing in mutual funds, investors should consider SIP mutual funds. These funds help them achieve the objective of long-term financial goals, but investing in them is not always easy. A good way to learn more about systematic investment plan mutual funds is to evaluate their performance, which can be done with the historical data from websites that specialize in the area. This data can help you understand how mutual funds invest and how they behave over time.