Say hello to Mutual Funds
Very few people have the time and expertise to invest in the stock market directly. Therefore, a very good option for investors is to invest in stocks through the mutual fund route. Mutual fund investment can be done either in lump sum or in installments. Systematic Investment Plan (SIP) is an ideal form of investment where the investors invest at regular intervals, say, weekly, monthly or quarterly.
Mutual Funds & SIP
Very few people have the time and expertise to invest in the stock market directly. Therefore, a very good option for investors is to invest in stocks through the mutual fund route. Mutual fund investment can be done either in lump sum or in installments. Systematic Investment Plan (SIP) is an ideal form of investment where the investors invest at regular intervals, say, weekly, monthly or quarterly.
Benefits of investing through SIP
Financial Discipline
SIP is one of the systematic ways to achieve your long term goals.
High returns
If you invest Rs.2000 per month a continues period of 10 years, you could see your capital grow to Rs.4,64,678/ - at an average return of 12% per year.
Reduce your tax payout
You can reduce your tax payout if you choose a Tax Savings Fund.For each one of us, our needs and financial goals are different. So is the amount we can set aside to reach our goals
Rupee cost averaging
You can take advantage of Rupee Cost Averaging. This means that you buy fewer units when the price is high and more when the price is low, thereby averaging the cost per unit.
Build-up capital at your own pace
You can build-up capital at your own pace through monthly instalments starting ideally at Rs.1000/- per month.
Stop any time
You can stop at any time and redeem your units, unless you have chosen a Tax Savings Fund.
Growth in the value of investment.
Mutual fund SIP is designed to make the most of the power of compounding as the returns generated on the principal invested are reinvested leading to a growth in the value of investment.
Systematic investment through SIP
The following table shows a comparison of returns from systematic investment through SIP for a few years. This also depicts how investment planning can help you to accumulate a good corpus at the time of retirement.
32
Age of SIP started
₹5000
Monthly investment
60
Investing until the age
₹18 Lacs
Total investment
Investment grows to**
₹ 1,54,04,866
35
Age of SIP started
₹5000
Monthly investment
60
Investing until the age
₹15 Lacs
Total investment
Investment grows to**
₹ 8511033
** Assumes compounded returns (CAGR) of 12% p.a over the entire period
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For each one of us, our needs and financial goals are different. So is the amount we can set aside to reach our goals.
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Mutual fund SIPs are time tested instruments for long term wealth creation.
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It is one of the best routes to consider no matter what your goals are, be it education, retirement, marriage or to buy assets like car, property or apartment.
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Do remember that with SIP it’s the time in the market and not timing the market that helps you create wealth. So start investing today.
SIP Calculator
Journey of Geojit
Geojit Financial Services is one of the leading investment services companies in India, with over 35 years' experience in the Indian Capital Market and a strong presence in the Gulf Cooperation Council (GCC) countries. Listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), it has over a million clients and a wide network branches. BNP Paribas, C J George - Founder and Managing Director of Geojit, Kerala State Industrial Development Corporation (KSIDC) and Rekha Rakesh Jhunjhunwala are the prominent shareholders of the company.
Geojit Financial Services has an extensive presence in the GCC region via joint ventures and partnerships: Barjeel Geojit Financial Services LLC in UAE, BBK Geojit Securities KSC in Kuwait and QBG Geojit Securities LLC in Oman. The company also has a presence in Bahrain through a business partnership with Bank of Bahrain and Kuwait.
The friendliest way to buy mutual funds
online.
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