Systematic Investment Plan (SIP) is a way of investing in mutual funds through which an investor can invest a fixed amount in mutual fund scheme of his/her choice at regular intervals.
Like a Recurring Deposit, an investor can invest fixed amount at regular intervals (monthly or quarterly) through SIP. Rather than investing a large amount one-time through lump sum mode, more investors now prefer to invest smaller amounts regularly through the SIP mode. You can start investing through SIP in a mutual fund scheme with an amount as low as Rs 100 per month.
BENEFITS OF INVESTING THROUGH SIP:
Best SIP Plans for the Year 2022:
| Fund Name | Monthly Investment | 3 years Return; |
|---|---|---|
| HDFC Balance Advantage Fund | 5000 | 14.39% |
| ICICI Prudential Bluechip Fund | 5000 | 19.41% |
| Kotak Standard Multicap Fund | 5000 | 14.15% |
| Motilal Oswal Focused 25 Fund | 5000 | 20.01% |
FOR APPLYING CLICK ON GIVEN BELOW LINK:
https://www.hdfcsec.com/systematic-investment-plan-sip
SIP IS BETTER FOR TAX SAVING :
Is SIP tax free?
If a SIP of an equity fund is held for less than 12 months, there will be short-term capital gain taxable at 15%. But if a SIP of a debt fund is held for 36 or more months, then there will be long-term capital gain taxable at 20% after indexation of cost.
How is SIP calculated?
In an SIP, a predetermined amount is invested in the mutual fund every month. In a lump sum deposit, the amount invested is a constant figure on which the return is calculated.
NEGATIVE SENTIMENTS OF SIP :
- SIP returns are lower in consistently rising markets.
- Limited options of SIP dates.
- Only Pre-defined Fixed Amount can be Invested by SIP.
- Stopping intermediate payment in SIP.
- Delay between actual application & start/stop of SIP.
