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One can invest in mutual funds regular
sums of money through the Systematic Investment Plan thereby
making the volatility of the securities market work in his
favour. Since the amount invested per month/quarter is constant,
the investor ends up buying more units when the price is
low and fewer units when the price is high. Therefore, the
average unit cost will always be less than the average sale
price per unit irrespective of the market rising, falling
or fluctuating. This concept is called "Rupee Cost
Averaging". The investors can gain automatically
without having to monitor the market or attempt to predict
the market for purchasing the units.
From the enclosed table, you may be pleasantly
surprised on the benefits of investing systematically over
the long term. An investment of Rs 1000/- per month, in
a mix of instruments yielding a net compounded return of
15% per annum over a period of 25 years, can grow to over
Rs.27 lacs. The table below illustrates how a regular investment
of Rs. 1,000/-per month grows over different time periods.
While SIP is ideal for investing in Equity
Funds nut should be used by all business and salaried class
persons to save a fixed sum every month in whichever fund
that suites their need and psychology. |
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Systematic Investment
Plan (SIP) - An Open End Monthly Income Scheme
The first step, that may take you a long way towards achieving
your financial goals. |
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| The Systematic Investment Plan (SIP) allows
investor to save a fixed amount of rupees every month/quarter
for purchasing additional units of Income (Debt) as also other
schemes like Growth (Equity) and Balanced Funds and is ideal
for meeting the following needs: |
- Higher education of children.
- Decent Marriage of one's daughter.
- Setting up one's son in business or profession.
- Acquiring House/ Flat
- Retirement needs.
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| Look at the following table and you may
be pleasantly surprised on the benefits of investing systematically
over the long term. An investment of Rs 1000/- per month, in
a mix of instruments yielding a net compounded return of Rs
15% per annum, over a period of 25 years, can grow to over
Rs27 lacs. The table below illustrates how a regular investment
of Rs. 1,000/-per month grows over different time periods. |
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Period
in (yrs) |
Your
Savings (Rs.) |
Grows
to @10.0% p.a. (Rs.) |
Grows
to @12.0% p.a. (Rs.) |
Grows
to @15.0% p.a. (Rs.) |
5 |
60,000 |
77,172 |
81,104 |
87,342 |
10 |
1,20,000 |
2,01,458 |
2,24,036 |
2,63,018 |
15 |
1,80,000 |
4,01,621 |
4,75,931 |
6,16,366 |
20 |
2,40,000 |
7,23,987 |
9,19,857 |
13,27,073 |
25 |
3,00,000 |
12,43,160 |
17,02,207 |
27,56,561 |
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| Do Contact Us for more details. |
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