Investment Management for Private Investors

Systematic Investment Plan a Better Way of Investment

Systematic Investment Plan a Better Way of Investment

Systematic Investment Plan, or SIP, is a method of investing in Mutual Funds through small amounts. SIP can be termed as a regular investment scheme where a stipulated amount of money is invested every month or quarter, instead of investing money in bulk. It is a great way of starting investing early and a boon for salaried individuals.

You can invest in a wide range of Mutual Funds, through Systematic Investment Plan.

What is SIP?

A SIP means Systematic Investment Plan. This is one of the more effective investment strategy for accumulating wealth in a disciplined manner over a long period. A specific amount will be invested for a chosen period at regular intervals.

For example, if an investor wants to invest Rs 12000 and makes a one-time investment at an NAV of Rs 15, 800 (12,000/15) units will be allotted.

In the case of a SIP, the investor distributes Rs 12,000 over a year and invests Rs 1,000 every month. The amount will be invested at different levels of NAV, as market conditions and level of indices keep changing on a day-to-day basis. The investment in 12 installments will get averaged at different NAVs in an automatic manner without the investor timing the entry point.

Sundaram Equity Hybrid Fund

Description:

The fund is for investors who want exposure to both equity and debt. The equity portion of the portfolio will be a minimum of 65% and the debt portion will be a maximum of 35%. This fund can be considered by those investors who are seeking long term capital appreciation with lower volatility than in a 100% equity oriented fund

Suitability:

This fund is suitable for investors who are seeking capital appreciation and current income through a judicious mix of investments in equities and fixed income securities.

Fund Features

  • Investors seeking regular income together with equity exposure
  • Self-balancing asset allocated portfolio which combines high risk/return characteristics of equity and lower risk/return characteristics of debt

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