3 reasons why you should start a SIP

Name a long-term financial goal, and experts would chorus: you should start a Systematic Investment Plan (SIP) in an equity mutual fund. In fact, it is difficult to escape this ubiquitous strategy these days. Have you ever wondered what is so special about SIPs?

 

 

Financial discipline

Everyone would talk about maximising profits as the main reason for recommending SIP strategy. But we believe that most important feature of SIP-based investing is imparting financial discipline in the lives of investors.

To start a SIP Call 9999 321 868

Read More

#SIP #Mutual Funds #Financial Planning #Value Cost Averaging # Equity

Have Lump sum to invest use STP !

1.What is STP?

STP is a facility provided by the mutual fund house that allows investors to invest a lump sum amount in one scheme and transfer regularly a pre-defined amount into another scheme.

The scheme that is considered for lump sum investment is called ‘source scheme’ and the scheme to which the amount is transferred is called ‘destination scheme’ or ‘target scheme’.

Generally, investors put lump sum amounts into a liquid fund and transfer it to an equity fund. This is typically used by investors who are scared to invest a lump sum amount in equity mutual fund due to the volatility in the stock markets.

STP staggers your investment over a period of time and helps maintain a balance of risk and return

2. How does it operate?

If an investor wants to invest Rs 1 lakh in an equity fund through STP, he will have to first select a debt fund. Once that is done, decide on the amount to be transferred to equity funds and the frequency.

For example, he can decide to transfer Rs 10,000 on the 1st of every month for 10 months to an equity fund or even Rs 2,500 every week. Transfer facility is available on a daily, weekly, monthly and quarterly interval. Some portals allow you to do it through multiple AMCs (asset management companies) as well.

3. How does an investor gain?
In an STP , the money remains invested in a liquid fund till it is transferred to equities. This money earns a return, which is generally higher than that of a savings account.

STP helps in averaging out the cost of investors by purchasing fewer units at a higher NAV (net asset value) and more at a lower price.

You can also use this strategy to rebalance portfolio across debt and equities. If investment in debt increases then that money can be reallocated to equity funds through STP and if investment in equity goes up then that money can be switched from equity to debt fund using STP.

Five mistakes mutual fund investors should avoid in this market

Many mutual fund investors, especially new comers, are nervous as the market is hovering around historical peak. All the talks of expensive valuations, liquidity-driven rally, etc. are making them anxious about their investments. Many of them are asking their mutual fund advisors pointed queries about their investments. According to advisors, they are cautioning their clients against committing certain mistakes that they say happen in a rising market like the current one.

Read more at:

Five mistakes mutual fund investors should avoid in this market

Are you KYC compliant?

Do you know that KYC is mandatory for investments in financial markets and even for opening a Bank account?

KYC , Know Your Customer is a process for financial institutions to establish identity of their customers. KYC is mandatory for opening a bank account or for investments in Mutual Funds  (Micro SIPS and low balance accounts are exempt)

For KYC – An Identity proof and a Residence proof is required.

First time investor in Mutual Fund needs to fill the CKYC (Central Know Your Customer) form before investing in mutual fund. Along with the form, she/he has to submit a self-attested copy of the PAN card and address proof, such as passport /Aadhaar card/Election I Card. Once the form is processed by the registrar, a 14-digit KYC Identification Number (KIN) will be issued by CKYCR, which can be used to invest in all financial products including mutual funds.

How can CKYC be done?

Along with the CKYC form, photocopies of documents have to be physically verified and attested, and an in-person verification of the investor has to be done. This can be done by an authorized Mutual Fund distributor.

If you are keen to invest in Mutual funds but don’t have KYC call me on 9999 321 868 and I will help process your KYC application.