The Benefits of Investing in SIP Mutual Funds
Investments are made solely with the aim of acquiring attractive returns in the future; for some they portend short term returns while for others, they are an assurance of long term returns. SIP Mutual Funds facilitate the savings of individuals in the most orderly manner. Mutual fund investments have become a hot property for those with heavy pockets and SIP mutual funds come to the rescue of all investors, big and small. Prior advice and guidance from Fund managers or experts helps you invest in the correct manner.
Investments through credible brokers:
Brokers often offer investors aggressive and conservative SIP mutual fund options. The former involves making investments in at least two large-cap stocks and 3-4 mid-cap stocks while the latter involves investments in at least five large cap stocks. Some finance institutions go a step further with an additional ‘moderate’ option of investment. Under the circumstances, Brokers apprise investors consistently about all updates and performances of the stocks in question.
You should leave the decision of selecting the most suitable stocks to your broker /finance experts as they are skilled professionals in this domain. They guide you towards understanding the risks and the returns which you may be totally ignorant about.
SIP Mutual Funds include investments of your money across sectors in established industries which have a proven track record of positive performances over a period of at least 6-7 years. This diversification of your funds helps reap the greatest rewards over a long time-frame. Your savings are compounded & the returns are striking. You must remember though, that the performance of these stocks has to be consistently progressive. These funds are a panacea for unstable economic situations as they safeguard your funds to the hilt.
SIP Mutual Funds comprise of the highly risky, Equity-based Growth Funds, totally dependent on the performance of the stock market. Investments upto 6-7 years in these funds bring highly lucrative returns to investors. The less risky, Equity-based Balanced Funds, involve investments in Equity & Debt. A lock-in period of at least 3 years guarantees investors with impressive rewards. You can also consider Debt-based Income Funds and Debt-based Ultra short term funds. The former requires a time -frame of at least 3 years while the latter requires only two years and would not reap you great benefits.
Investments in SIP mutual funds offer you the luxury of re-investing the returns you receive at the end of the said tenure. This simply means more benefits and more wealth for investors.