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Best SIP Plans for Short Term Investment

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best sip plans for short term investment

What is SIP? 

SIP stands for Systematic Investment Plan. It’s one of the simplest and smartest tools to invest. Any person can start investing by a certain amount each month in a mutual fund.  

How does SIP Work?

A SIP allows an investor to invest periodically per month, week, or quarterly depending upon the nature of investor.  

An investor can select a date on which a selected amount will get deducted from his account and get invested in its selected funds.  

How is the SIP better investment than other options 

There are numerous reasons why sip is better investment than other options.  

  • No Need to keep updated with the market every time. 

One of the best benefits of investing in SIP is that there is no need to constantly watch the market. SIP provides an assurance to protect the investment with any kind of volatility, as a major portion of your investment is invested over various money market instrument. Thus, only small part of your entire investment will face the market volatility. 

  • Rupee Cost Averaging: 

Sip allows you to invest in both bull and bear market cycle. So, when the market is down, you can buy a larger number of units and sell on high when the market is at its peak. This is called as rupee cost averaging. 

  • Good for early and small investors. 

An early investor who has just introduced to the financial market, then starting a sip is one of the best options to have. It will not only give you exposure about the market, but also helps in avoiding unnecessary risk in the market.  

Best SIP plans for short term investment in 2019: 

Here is the list of best sip plan for short term investment, according to economic times:  

  • Axis Bluechip Fund – G  
  • ICICI Prudential Regular Savings – G 
  • ICICI Prudential Regular Savings – G  
  • UTI Regular Savings Fund – G  
  • Motilal Oswal Multicap 35 Fund – G  

Things to consider before investing in SIP

Before investing in SIP, there are certain things to consider:  

  •  Proper Planning 

Before choosing any SIP, an investor must properly plan its financial goals. Afterwards, select a SIP which meets his financial goals as well as a fixed amount to be invested each month.  

  • Timing Factor  

Timing plays a crucial role before investing in mutual fund. So, there is no perfect time to invest in the market. It’s all about discipline and practice. Mutual funds provide a decent return over a period. 

  • Role of NAV 

NAV plays a critical role for any investor before investing in mutual funds. There is a general assumption in investor minds that a fund with lower NAV will give higher growth, while one with higher NAV will give lesser growth. But it’s not all the cases. Apart from looking at the NAV price, an investor should also pay attention to the track record, fund management and volatility which determine the portfolio return.  

 

*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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