Posts Tagged: ‘SIP’

Smart Online Investment in Mutual Funds

October 30, 2014 Posted by admin

In the age of speed and the era of internet, when everything that you ever wanted to know and anything you ever wanted to purchase is available online, then why not investments?

Yes! Time is precious in our everyday busy lives. When shuttling between work and home takes much time on road and the rest of the day is packed between meetings and deadlines. In those few precious moments of peace that you get or steal, if you have to manage your money then it would be tough to personally go to an investment bank. It would be more than demanding to first get an understanding of investment types and policies and then get down to understand market, figure out ways to crack the technicalities, read the policy documents, zero down priorities in terms of lock in period, liquidity, etc. and all of it in person. Thus to simplify things, to save time and encourage people to invest in mutual funds, online investment was made possible.

Most of the investment banks have recognized that as people have got comfortable with online transactions, so has the investor. Earlier investment in mutual funds was a tall task that involved a lot of paper work, but with the increased popularity and usage of online mutual fund investment it has become evident that offline is pass´┐Ż and online application is a shorter and a simpler process. All it requires is filling of a form, which can be submitted right away, hence no more standing in long queues. And since online transfer of funds is just a quick click job; transferred and commercial transactions happen in a jiffy.

When investing in mutual funds, it’s essential to know various plans, schemes and its features as well as the terms involved, that’s exactly why all this is clearly mentioned on the websites of almost all the Asset Management Companies (AMCs). Also, to further assist the user with their risk profiling websites of various investment companies like, Reliance Mutual seek some basic answers from the investor to get back to them with solutions. To facilitate smooth flow for your experience of online investment in mutual funds, there is everything from basic information of product offered, to market updates, to latest NAVs, scheme information, application form etc. available online. Also there are several tools and calculators, which further assist the investors to calculate their goals, SIP and estimate of corpus as well. With so much information accessible and that too all the time, investment in mutual funds is no longer a tedious process.

And having invested online in mutual funds, the investor is assigned a transaction pin and has a dashboard of his investments, where it can track the performance & transactions, check for additional information, dividends etc.

Planning Your Finances With Mutual Funds

August 22, 2014 Posted by admin

When planning your finances it is important to be very clear as to what your goals are. Once you have them clearly defined it becomes easier to select investment options based on your needs. The next step is to have all the knowledge possible about where you are investing your money. Knowledge equals power in the financial world, and the more you have, the better off you will be.

There are a number of avenues to invest your money in, but one of the largest growing financial products in India is mutual funds. Most Indian’s are very conservative in terms of the investments they make. Culturally we prefer safety to risk when it comes to our money. Therefore, mutual funds offer us an excellent avenue as they reduce the risk factor for individual investors while maintain either a dynamic or secure return rate, depending on how the fund’s assets have been allocated.

One of the best ways to invest into mutual funds is through the systematic investment plan or the SIP. When investing through an SIP you decide on how much you wish to invest every month in a particular fund and also for how long. Let as assume that you wish to invest Rs. 5000 every month for 3 years. Then every month that money will be deposited into the fund from your account. The advantage of this is that if the fund is not doing well and the cost per unit or NAV drops, then for the same amount invested, you are receiving more units, which will increase your return through volume. Whereas if the fund is doing well and the NAV increases then, even though you purchase fewer funds per instalments, your returns at least are high.

Thus an SIP helps to make the best out of any situation that the market creates for it. Also, once all the initial paperwork is completed it is hassle-free as the amount is simply removed from your account every month and deposited into the fund at regular intervals. However, simply because we have mentioned the many advantages does not mean that it is the ideal investment avenue for you.

Sometimes it is necessary to invest in funds that definitely come with a higher risk like ELSS funds or equity linked saving schemes. These funds invest their capital solely into the equity of companies thus generating an extremely dynamic rate of return. However these funds stand at a higher risk as the equity market is far more volatile and hence riskier than investing in government bonds and so forth. In the end, you must always pick the investment route that matches your needs and helps you to achieve your financial goals.