A SIP investment is a tool provided by mutual funds to help investors make disciplined investments. The SIP investment enables an investor to make fixed investments in the mutual fund scheme of their choice at predetermined intervals. The pre-determined SIP investment periods might be weekly, monthly, quarterly, semi-annually, or annually, and the fixed amount of money can be as low as Rs. 500.
A Step-by-Step Guide to Achieving Your Financial Goals:
Due to average costing and the power of compounding, an investor who chooses the SIP investment way to invest can do it in a time-bound manner without worrying about the state of the market. According to the market rate, more units are added to your account with each investment in a SIP investment plan in India. The amount reinvested and the return on those investments increase with each investment.
Make sure the objectives and risk levels of the mutual fund scheme match your risk tolerance and profile before you begin a SIP investment. If you’ve decided that a particular mutual fund is a good fit for you, you can begin a SIP investment. Having an active SIP investment account helps you gradually develop a sense of financial discipline because you are required to set aside a specific amount at regular intervals. By creating an account with the fund company of your choice, you can invest in SIP investment online.
Use of SIP Calculator:
A SIP calculator is a tool used to estimate the potential returns on investments made through SIPs in mutual funds or other financial instruments. SIPs are a popular way to invest money regularly, typically on a monthly basis, to achieve long-term financial goals such as wealth creation, retirement planning, or purchasing a home.
The Power of SIP Investment:
- Ability to compound: The benefits of frequent SIP investment and long-term investing are boosted by the compounding effect. The compounding effect makes sure that you get returns on both your principal (the amount you actually invested) and the gains on your principal so that your money grows over time as your investments generate returns. Also, the returns generate more returns.
- The Power of Early Starts: The easier it is to reach your goals, the earlier you start regularly saving and investing. Up until the age of 60, you can start investing at a relatively cheap cost per month and get a respectable return.
- Rupee cost averaging: A SIP investor benefits from rupee cost averaging when making investments. It means that when the scheme’s Net Asset Value (NAV) is low, the investor receives more units, and when the NAV is high, the investor receives fewer units. Over time, this lowers the average cost of units.
- Flexibility: The SIP investment length, frequency, and amount can all be customized by the investor. Also, they have the choice to alter the SIP’s amount or pause or end it.
- Investing with prudence: SIP investment inculcates the value of disciplined investing in an investor as they are committed to investing a specific amount for a fixed period of time which is essential in long-term wealth creation.
Mirae Asset Midcap Fund:
The scheme’s investment goal is to generate long-term capital appreciation via a portfolio that primarily consists of mid-cap Indian equity and equity-related assets. For the best portfolio construction, the fund manager may occasionally also invest in other Indian equities and equity-related securities. Subject to SEBI-mandated constraints for the Scheme Information Document and Scheme category standards, the fund may invest in both large- and small-cap equities.
The minimum SIP investment in this program is Rs. 1000. Invest mostly (>65%) in mid-cap equity and securities connected to equity (101st -250th company in terms of full market capitalization). On the basis of variables like comparative valuations, liquidity, and market attitudes, the fund may also invest in other Indian shares. The recommended investment period is 5 to 7 years or more.
Mirae Asset Midcap Fund aims to develop a portfolio of businesses with sound business ideas that could develop into tomorrow’s large caps. Mirae Asset Midcap Fund has a diverse portfolio with involvement in various industries. The majority of the companies in the universe of stocks will have solid business models, long-term competitive advantages over rivals, and excellent return ratios. Before investing, the Fund Managers will keep an eye on the trading activity of a certain stock to reduce the risk of liquidity.
Investors can take part in the expansion of mid-sized businesses, which have the potential to expand into tomorrow’s major businesses and generate wealth for the investor. The Mirae Asset Emerging Bluechip and Mirae Asset Great Consumer Funds, are some of the best-performing funds in their respective categories and are managed by the same fund manager. Since its inception, the fund has been able to exceed its benchmark, the Nifty Midcap 100 TRI.
With SIP investment, you can unwind because the funds are automatically taken from your account and invested in mutual funds. Also, due of the regularity, it assures that you are actively striving to increase your money, unlike lump sum deposits.
