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Best SIP for a new Mutual Fund Investor

To learn that from available SIP Mutual Funds which funds are best for existing or new investors, it is important that you primarily know, what actually the product is and what does it offer. Who is the investor? Or whom do we call as an investor?

When an individual wants to deploy their fund into some schemes or on anymoney earning platform, it is called investing and the individual is called an investor. Investors usually invest their money on money earning platforms or productsto gain returns on their funds. Although investment is a subject to market risks, higher the returns higher the risk and vice versa. Modern investors are expected to have somewhat knowledge of how to invest online.

Money earning platforms and products:

Money earning platforms are basically those applications which provide you witha platform through which you can invest your funds, while products are those in which you actually invest in. There are various investment products such as Mutual Funds, Fixed Deposits, Bonds, Gold, and Commodities etc. However, the most preferred product by the investors of any age and any background is Mutual Fund. These platforms and products are a way which clarifies your question “how to invest online” and enable you to earn higher returns.

What is a Mutual Fund?

Mutual Fund is a scheme in which the money or funds of the many investors are pooled by the investment managers and portfolio management companies.Funds of many investors are invested in profitable securities like stocks, shares, bonds, money and capital market investments and gold etc.The portfolio management company also provides services like financial consulting, advisory, customer service, marketing, accounting and sales functions, etc. for the schemes.

What are SIPs in Mutual Funds?

SIP means Systematic Investment Planning. It means that your funds are systematically planned while investing in order to minimize the risk and earn profits, also is a smart tool for investing which is simple and hassle-free.You can start by investing a certain amount of money at a regular interval say weekly, monthly or quarterly, which is generally more clarified to you by the wealth advisors. With each instalment of investment that you make, additional units of the schemes are bought at the prevailing Net Asset Value (NAV) and adds on to your account and profile. You get the benefit of Rupee Cost Averaging and the power of compounding and earn higher returns.

Advantages of SIP Mutual Funds

Risk Diversification: As also stated earlier, Mutual Funds are subject to market risk. Since you indirectly invest your fund that is through your portfolio manager, they invest it in various profitable investments. Portfolio management company/companies also provide experienced wealth advisors, which helps you to start investing with confidence as well as smartly in the market.

Compounding Interest:

The main attraction that amazes the investors is the compounding interest. This means, that after a certain period of time you get interest on your principal amount as well as the forthcoming returns. This keeps you engage into the market and let you earn more returns. This automatically makes an investment in the mutual funds a long strategy investment. Compounding also occurs when you re-invest in your earnings.

Timing of the market:

Market timing is the strategy of making buying or selling decisions of financial assets (often stocks) by attempting to predict future market price movements. This indeed has an effect on your investments, it could be good or bad. Your wealth advisors monitor all these and keep you updated, as you have the right to know where your funds are being deployed.

Consistency:

Securing the future is important and being consistent in saving is a great sign of progress and maturity. As Mutual Funds enables systematic investment planning, this means you pay either on a daily, monthly or quarterly basis which helps you to imbibe the habit of consistency and earn more returns.

Various modes of Investments:

Lump sum (or one time), systematic investment plans, systematic transfer plans (from other mutual fund schemes), systematic withdrawal plans, switches from one scheme to another etc.

Systematic investment plans (SIPs) in mutual funds help investors to maintain a disciplined approach to savings and investment.



This leaves you with no question of How To Invest Online when Mutual funds dues are so flexible that it can be paid in lump sum i.e. all at a one single time.

Systematic investment plans (SIPs) in mutual funds help investors to take emotions out of the investment process and also to maintain a disciplined approach to savings and investment.