SIP Investment

What is Sip and How Does SIP Work? 

A systematic Investment Plan is a process to Invest in Mutual Funds where a Fix Amount gets deducted at a fixed date till it is planned. As of now minimum Rs.100/- can be used for Investment in Mutual Funds as SIP. It is very useful for an employee or other businessmen too. They can Invest a small amount every month and deposit in selected Funds and Invest in Equity Market. Here Averaging makes the Funds buy at different prices, and ultimately make high returns once the price goes up.

TOP SIP Funds for Investment

Searching TOP SIP Funds for Investment is not easy, Because A SIP in Mutual Funds can be Invested for One Year Two Year or for Long Term, or Short Term. Whether Investor age also depends they are at an early age or near retirement.

TOP SIP Funds for Investment is good once you know the Risk Level of the Individual Investor, Or that Investor has good knowledge about Risk Management. Everywhere we see or listen to “Investment ke Liye Mutual Funds Sahi Hai” which needs many points to consider before selecting any TOP SIP Funds for Investment.

Whether that Investor is a first-time Investor or if they select some high-risk Mutual Funds that also create a problem once Equity Market gets into correction mode, In that case, Investor loses hope and experience very negatively about Mutual Funds Investment. 

There are many types of mutual funds as below :

  • Large Cap Mutual Funds: Large Cap Mutual Funds are Invested in Blue-chip companies or Top 50 companies listed in BSE or NSE. It is classified as low-Risk Funds and as well as it is less volatile than any other funds.

  • Mid-Cap Mutual Funds: This type of Mutual Fun is invested in the top 200 companies listed in BSE NSE here Risk level is a little higher than in large-cap mutual funds. Normally advised for investor need for more than 5 years of investment period.

  • Small Cap Mutual Funds: In this fund, small or startup companies are selected for investment only for a long time frame of more than 10 Years. It is a High-Risk High Return fund.

  • Sector Mutual Funds: These types of funds are based on a particular sector as per their movement it gots return. It is considered as very very high Risky funds. If the sector does not work then the return will be very low even negative.

  • Tax Saving Mutual Funds: This fund is used for Tax Saving Funds, where tax benefits can be taken under 80 C. Here normally large and mid-cap types companies are selected for investment. Here one can get a higher return with Tax benefits. There is a locking of 3 years from the date of Investment.

  • Gold Fund: Gold Fund is very suitable if someone wants to save their making and breaking charge by a goldsmith. It is the funds where the Exit load is almost NIL and the price varies as per Gold Price. Very Next day you can get your money credited to your Account once sold. It is an excellent instrument for Investment if someone does not want to get an impact from Equity Market.

  • Funds of Fund: It is the fund where Investor amounts are invested in different Funds of different AMCs by the fund managers.

  • Debt Funds: Here The Investment amount is invested in Government Securities and other Government papers only. Here we can invest for a very short period. Its return is not affected by Equity Market Movement.

  • Overnight Funds: It is also one type of Debt fund invested for a very short period even one day.

  • Balance Funds: In this fund, only 60% of the Investment amount gets Invested in the Equity Market rest amount is invested in the Debt and bond market. Its return is comparatively low compared to equity funds.

  • Multi Cap Funds: Here the investment amount is invested in all types of Companies Large Cap, Mid Cap, and Small Cap 25% each, and the rest 25% can be used as per market position and demand.

  • Multi-Asset Funds: In this type of fund amount is invested in different Assets like Equity, Gold, Real Estate, and other assets. It is considered a Low-risk low return fund.

  • Silver Funds: These are very new funds where the amount is Invested in Silver and its return depends upon the price variation of Silver metal. There is no making and breaking charge to pay. So if one silver is purchased for Investment purposes then this is the best to have it.

  • Focused Funds: Here fund managers Invest in some focused sectors or companies as per funds characteristics.

  • Non-Cyclic Funds: This is a very unique fund used for some unique purposes. As the name suggests this fund invested in such companies where downfall is on the very low side. Always expect good demand in the market. So these Non Cyclic funds invest in those companies like paints, consumer goods, automobiles, etc.

So searching TOP SIP Funds for Investment is good once you know the Risk Taking capacity of an Investor, Have KYC is done or noted, and whether Have they some basic knowledge about the Mutual Funds Investment or not, If that investor has some earlier Investment in Mutual Funds must check their Portfolio and then they should search TOP SIP Funds for Investment.

Many Investors understand Mutual Funds Investment is Equal to Investment in Share Market but the share market is direct in High-Risk Zone where If you are not confident about your strategies, you can lose your capital. In the case of Mutual Funds, every rupee is diversified in many companies, so the risk level in Mutual Funds is very low but If someone has not selected TOP SIP Funds for Investment their return may be much lower than they expect.

One Investor I know also searched TOP SIP Funds for Investment and connected with one  Mutual Funds AMC and purchased some funds from there, Also he Invested with Allneeds Advisory Services Pvt Ltd. After five years when they compare the return they find the five funds selected by them their return was around 13% whereas the funds allotted by Allneeds were given his return. It was expected around 25 to 27% per annum.

TOP SIP Funds for Investment is good once It is searched by an Expert in Mutual Funds Industries. If an Advisor does the same it will be more effective, specified, and high Return oriented. Allneeds Online portal alnnedsMFonline and its mobile App Wealth Elite is the best Website portal and Mobile application.

Most Importantly If some on searching TOP SIP Funds for Investment and Financial Planning then select the right Investment Advisor which creates more wealth through the right advisory support from day one. Because Investment is not one day game as Investor again has to Invest as their Income grows. 

Every time an Advisor or their Online portal can help you to Invest without any confusion. I have seen there are high differences. when an Investor goes for Direct Funds and selects TOP SIP Funds for Investment from Google. It is realized after 2-3-4 years but till then time passed and nothing can be happened.

Power of Compounding 

The power of Compounding means you are getting Interested in your Interest. In Mutual Funds there is no fixed Interest but your return depends upon Market valuations and NAV Rate. As the full amount of your capital and profits continue on Investment so it gets compounding benefits from the return. Here one can get exponential growth or J Curve Growth from their Investment.