From its inception in 1963 till now – mutual funds in India have come a long way. But one thing has remained constant. And that is the apprehension of investors regarding how safe their money is in these mutual funds. Some people go one step further and wonder whether investing via SIP carries more risk. Let’s debunk all myths about this today. What Is an SIP Let’s give you an analogy. You buy an AC worth Rs.40,000. Instead of paying the amount upfront, you pay in instalments. Why? The payment becomes manageable. You don’t feel the pinch when you pay …
Tag: SIP
SIP – Small Steps towards Big Dream
The Great Albert Einstein once said, “The Compound interest is the eighth wonder of the world. He who understands it … earns it, he who doesn’t ….. Pays it.” Investment through SIP or Systematic Investment Plan can do wonders through the Power of Compounding. It is an investment mechanism through which you can create wealth over the long term. Like drops of water make an ocean, an SIP can also help you build long-term wealth without bothering about the market’s ups and downs. It allows investing a fixed amount (as small as 500/-) on regular intervals like weekly, monthly, quarterly, or …
How are SIPs taxed?
Systematic investment plans (SIP) are one of the best ways for investors to start their journey in the capital markets. You can start small, make the most of market volatility, and grow your wealth gradually in the process. There is nothing not to love about SIPs. In this week’s blog, we will look at how your systematic investments are taxed. By understanding the tax implications on your mutual fund investments, you will be able to make the most out of your returns by timing your investments and exits. To begin, the capital gains on the sale of your mutual fund investment can either attract a short-term capital …
SIP It, Shut It But Don’t Forget It
SIP or Systematic Investment Plan is a method of regular investment for wealth creation over a long period of time. Unlike investing all your investible funds in one go, SIP is a process of investing small bits of money regularly for a long period of time so as to reap the benefits of both compounding as well as rupee cost averaging. Hence, SIP is increasingly becoming popular to small and big investors as well. SIP Advantages 1. SIP is a process or method of investing, similar to recurring deposits in a bank. It is no asset class in itself 2. …