3 tested and trusted formulas of investing in mutual funds:
SIP:(Systematic Investment Plan) in mutual funds is an investment strategy that allows investors to invest a fixed amount regularly (monthly, quarterly, etc.) in a mutual fund scheme. This approach enables disciplined investing and helps in wealth accumulation over time.
Key Features of SIP Advantages of SIP
Regular Investments * Disciplined Approach
Rupee Cost Averaging * Lower Risk
Compounding Benefits * Convenience
Affordability
Flexibility
How to Start a SIP
SIP is a better substitute of RD (in Bank or Post Office) for those who wants to accept market risk and a better return or growth in return.
SWP:(Systematic Withdrawal Plan) in mutual funds is an investment strategy that allows investors to withdraw a fixed amount regularly from their mutual fund investments. This approach is often used by retirees or those needing regular income.
Key Features of SWP Advantages of SWP
Regular Withdrawals * Steady Income Stream
Flexibility * Maintains Investment Exposure
Automatic Process * Financial Planning
Capital Gains Management
How to Start an SWP
SWP is a better substitute of MIS (in Banks or Post Offices) wherein I can choose my rate of return and frequency and at the same time I can get capital gain on the invested amount and there is no minimum or maximum period of SWP. It is a wonderful proposition for those who wants to accept market risk and a better return or growth in return.
STP:(Systematic Transfer Plan) in mutual funds is an investment strategy that allows investors to transfer a fixed amount of money regularly from one mutual fund scheme to another. This is often used to gradually move investments from a volatile fund to a more stable one.
Key Features of STP Advantages of STP
Regular Transfers * Disciplined Approach
Flexibility * Market Timing
Risk Management * Liquidity Management
Investment Strategy
How to Start an STP
STP is an effective strategy for investors looking to manage risk while transitioning funds between different mutual fund schemes, making it a valuable tool for long-term financial planning.
