What is a Mutual Fund?
A mutual fund is a pool of money formed by multiple investors who are looking to invest in various securities such as stock, bonds, etc . These funds are operated by professional fund managers who invest the funds capital and attempt to produce capital gains and are registered with the Securities and Exchange Board of India (SEBI).
Why should I invest in Mutual Funds?
As an investor we aim to get maximum returns on our investments to reach our desired goal. But one may lack the time to track the market and knowledge to choose suitable investment option. With various types of Mutual funds available one can invest in a Mutual fund that suits his/her objective and risk appetite.
Achieve Big dreams through Systematic savings
Dreams can only be achieved if you work towards them. Even building wealth is no different. A Systematic Investment Plan (SIP) helps you do just that. SIP is a method of investing a fixed sum, regularly, in a mutual fund scheme. SIP allows one to buy units on a given date each month, so that one can implement a saving plan for themselves. The biggest advantage of SIP is that one need not time the market. Rather than timing the market, investing every month will ensure that one is invested at the high and the low, and make the best out of an opportunity that could be tough to predict in advance.
Benefits of investing with SIP:
- Disciplined approach to investments
- No need to time the market
- Harness the power of two powerful Investment strategies:
- Rupee Cost Averaging - Benefit from Volatility
- Power of Compounding - Small investments create Big Kitty over time
- Lighter on the wallet
- Reap benefits of starting early
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