Don't Stop Investments -- Makes market timing irrelevant ::::::: Most investors are not experts on stocks and are even more out-of-sorts with stock market oscillations. With an SIP investment, disciplined investing over the long term sees to it that an investor is not guided by the market-timing strategy. Systematic investing in a mutual fund is the answer to preventing the pitfalls of equity investment and still enjoying the high returns. SIP allows you to take part in the stock market without trying to second-guess its movements. It can go a way in minimizing the effects of investing in volatile markets. Secondly to prevent losses in volatile markets.
Lowers the average cost ::::: SIPs work better because of rupee-cost averaging. Under rupee-cost averaging an investor typically buys more mutual fund units when prices are low. On the other hand, he will buy fewer mutual fund units when prices are high. This results in averaging of cost per unit and hence enhances the profit you would realise on selling the units . This is a good discipline since it forces the investor to commit cash at market lows, when other investors around him are wary and exiting the market. Investors may even be pleased when prices fall because the fixed rupee investment would now fetch more units.
SIP is one of the best investment option while investing in equity segment. Rupee cost averaging will be worked out in SIP and you will get good returns over a long period. Money will be safe in fluctuations of the stock market. If you targeting for a long term SIP is a very good option. You will be purchase units in different rates of the unit depending on the stock market.
In SIP we are investing a fixed amount regularly. Therefore, we end up buying more number of units when the markets are down and NAV is low and less number of units when the markets are up and the NAV is high. Generally, we would stay away from buying when the markets are down. We generally tend to invest when the markets are rising. SIP works as a good discipline as it forces us to buy even when the markets are low, which actually is the best time to buy .
SYSTEMATIC INVESTMENT PLAN (SIP)
Mutual Fund SIP is similar to a Recurring Deposit . Every month on a specified date an amount you choose is invested in a mutual fund scheme of your choice. The dates currently available for SIPs are the 1st, 5th, 10th, 15th, 20th and the 25th of a month. You?ll be amazed to learn about the many benefits of investing through BAFDL in any Mutual Fund product through SIP.
Note :: Now Daily SIP is also avaliable with the minimum of Investments of Rs. 300.00 . If you are opting Daily SIP -- You are going to get best averaging. Till date no other option is available which is better than this option in
Benefit 1 :::::: Become A Disciplined Invester
Benefit 2 ::::::::: Reach Your Financial Goal
Benefit 3 :::::: Take Advantage of Rupee Cost Averaging
Benefit 4 :::::::: Grow Your Investment With Compounded Benefits
Benefit 5 ::::::: Do All This Effortlessly
Criteria For Equity Fund Selection should be
** It should be diversified equity Fund.
** It should be large Cap Fund.
Ø ** Funds having performance track record with Consistent AUM.
** Major Fund Investment should be in Blue Chip Stock
Ø ** Criteria is low/medium risk with high Return
Ø ** The AUM should be having minimum 4 star ICRA ranking