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
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
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.
- 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