Decoding Sip Investments

Money can act as the biggest motivator for many of us. In today’s electronic world, most of the money exists only on the papers and many of us wish to see an amazing figure under the head that reads “bank balance”. Well, SIP investments, when smartly planned can give investors enough reasons to save and save more to emerge successful in life’s financial battle.

Even investment advisors know the fact that different people have different instincts and this might be the reason for having a myriad number of SIP plans, to suit the needs of every kind of investor. 

Some of the kinds of SIP investments are mentioned below:
  • The Growth Plans: Investors under the growth plans can choose to invest a particular amount in SIP month on month and it keeps on accumulating. The growth of the investment in such plans depends on the percentage of the debt and the equity component. Once the term ends, the money invested every month and the returns obtained on the same become the fund value. If the fund doesn’t perform as expected, the investor can also switch to other plans. New investors need to always opt for a mutual fund investment advice before making an investment in SIP. 
  • The Dividend Plans: It is a well-known fact that all companies need capital to run their operations. To raise such capital, the companies grant ownership to various investors which is in proportion to the amount the company has put at stake. These companies provide returns to the investors annually in the form of dividends. SIP plans of such kind are ideal for those investors who are looking to earn returns annually. Investors can take help from professional fund managers who provide the best mutual fund advice in India.
  • Fixed Maturity Plans: Fixed maturity plans are the closed-ended mutual funds. These funds make their investments in debt instruments. The date of maturity with such funds is pre-defined and is considered to be a safe investment option by many. If the investor invests more than a year, one of these are also free from any taxes. If you are burdened with the taxes, you are paying on the bank fixed deposits, you can switch to fixed maturity SIP plans.

So, if you wish to earn more from your hard earned money, it is time you choose the best SIP plan and start investing right away!

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