Success mantras 0f SYSTEMATIC INVESTMENT PLAN - SIP..!

Success mantras 0f 

SYSTEMATIC INVESTMENT PLAN..!

A QUICK GUIDE TO

SYSTEMATIC INVESTMENT PLAN

What is a SIP?

A Systematic Investment Plan or SIP is a smart and hassle free mode of investing money in mutual fund.

                             

SIP in various types of mutual fund schemes may be used to meet several life goals.

1. SIP can tackle market fluctuations Benefits of SIP

Example

If someone invests Rs. 1,000 with NAV  Rs. 10 they will

get 100 units in one month.

Next month if the NAV drops to Rs. 9.75, they will get 102.56 units in that

particular month.

In the following month if the NAV raises to Rs. 10.70, they will get 93.45 units. Considering 3 months of market fluctuation, the average NAV attained by the investor is `10.13*.

If the market is up and the mutual fund units NAV is

high, the investor will get less number of units. If the market is low and

the NAV is also low, the investor will get more number of units.

2. SIP can deliver the power of compounding..!

Total funds accumulated through SIP are considerably high if SIPs are continued for a long time.

This is mainly due to the magic of compounding.

Example

An SIP of Rs. 5,000 for 20 years can accumulate nearly Rs. 75 lacs (assuming an average return of 15%). If the rate of return falls to 10% that could have given Rs. 38 lacs which is comparable to other financial instruments.

If you start investing today, your hatchback may become a sedan in the coming 10 years. = NOW IN 10 YEARS

3. An SIP may make your goals easy to achieve

• SIP could range from monthly to quarterly. One can choose the periodicity as per their convenience.

• Through SIP, one can invest any amount from

Rs. 500 onwards.

• Through SIP one can invest in various types

of mutual fund schemes that could be used

to meet many life goals.

Success mantras of SIP

1. Start early

Start early to allow your Investments to grow.

2. Invest regularly

To avoid the pinch of a lump sum investment, adopt a periodic regular

investment approach to enjoy the benefits of compounding.

3. Identify the best asset class

Over the years, equities have outperformed and has the

highest  average growth than any other asset class.

Moreover, it's this asset class that has fared better even after

accounting for the inflation.

4. Keep increasing SIP amount as your income increases..!

The best way to tackle future inflation and prepare for your

future needs is by increasing your investment amount as per

your increasing income level.

5. Invest the right amount

Depending on your income duration and financial goal,

you can arrive at a suitable SIP amount.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.

Source: Excerpts from Swatantra UTI MF

An investor education initiative

TOLL-FREE: 1800 22 1230 S M S “UTISIP’ to 5676756

To know more about SIP visit www.beswatantra.com/SIP

The information contained should not be construed as forecast or promise. Any investment decision taken based on the information provided in the content above shall be at sole risks, cost and consequences of the user.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.

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