Is investment in SIP mutual funds good?
- Thread starter psg
- Start date
17ysaurabh
KF Mentor
Yes, it is.
SIP averages the highs and lows of the Equity market and gives great returns over a longer period.
Even people with lumpsum amounts prefer SIP using the STP method.
SIP averages the highs and lows of the Equity market and gives great returns over a longer period.
Even people with lumpsum amounts prefer SIP using the STP method.
17ysaurabh
KF Mentor
For a monthly SIP of Rs. 1000 in Index funds (relatively safe) and assuming 12% returns,
1. If you invest it for 10 years,
Your invested amount = Rs. 1,20,000
Estimated returns = Rs. 1,12,339
Total value = Rs. 2,32,339
2. If you invest it for 20 years,
Your invested amount = Rs. 2,40,000
Estimated returns = Rs. 7,59,148
Total value = Rs. 9,99,148
PS: If you are willing to take more risk, you can go ahead and invest in Flexi cap, Mid-cap or Small cap mutual funds and you might get returns at 15%
Nancygupta8042
KF Ace
For long-term, SIP is a good option, as it allows you to benefit from cost averaging
and for risk-averse investors, SIP may be a better option, as it helps you average out market fluctuations.
and for risk-averse investors, SIP may be a better option, as it helps you average out market fluctuations.
Umang Agarwal
KF Rookie
Investing in sip is good if you want to invest regularly and in parts .If you have Lump sum money you can invest in Debt fund and then start a STP from that fund.
Roddick Soram
KF Rookie
I think it depends on the mutual fund you are investing in. If you use grow for sip you can calculate returns easily according to your amount
gargsuneet
KF Rookie
It depends with what you are comparing.
If you are expecting 10-15% return, then yes SIP is good investment option for a long term prospective. Risk is less comparison to direct stock investment.
But if you are considering more return then investing in direct stocks is good option. But here the RISK is very big.
Investing in SIP (Systematic Investment Plan) mutual funds is an excellent option for individuals looking to build wealth steadily over time. SIPs offer the benefits of disciplined investing, allowing investors to regularly contribute small amounts, which are then invested in a diversified portfolio of stocks or bonds. This strategy helps to mitigate the risks associated with market volatility while potentially generating attractive returns over the long term. With SIPs, investors can take advantage of the power of compounding and benefit from rupee cost averaging, making it a smart choice for those seeking to achieve their financial goals with consistency and stability.
rohit_20085
KF Ace
zacobite
KF Mentor
won't be enough for anything.. the value of 1000 will erode.. you will have to keep increasing amount every yr for any substantial gain
theraj0007
KF Expert
kausikghgeol
KF Ace
SIP is always a good tool for investment
I want to SIP but don't understand which one is suitable regards years? Either 3 yrs or 10 yrs?
The INSANE Trader
KF Mentor
kausikghgeol
KF Ace
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