Bundled products often come with restrictions. The customer also gets locked into two products at the same time. This reduces flexibility.
After a short-term blip, mutual funds (MFs) are back to adding new systematic investment plan (SIP) investors at a record high pace, which was seen during the financial year 2021-22 (FY22). During the first six months (H1) of this financial year (FY24), MFs have added a net 77 million SIP accounts compared to 56 million during the same period of FY23. The net additions this year are a tad higher than the 76.5 million additions in H1 of FY22.
In this article, we list the wrong reasons for investing through SIPs and cite instances when SIPs may not deliver.
UTI, SBI, Reliance MF promote SIPs with low threshold. However, there are several hurdles. Mutual fund investments require the investor to have a PAN -- a big deterrent when it comes to tapping small and marginal investors. A big fear is that given the fickle nature of the stock market, rural investors might easily get scared when there is a downturn in the market.
Consider investing a portion of your assets in tax-saving funds to accumulate wealth over the long-term.
Banks and mutual funds are devising novel methods to grab your deposits.
SEBI has published data showing that more than 90 per cent of investors lose money in futures and options, explains Harsh Roongta.
Mutual fund expert T srikanth Bhagavat told Get Ahead readers about what to do with their SIP investments in mutual funds, now that the stock markets are once again at their peak.
Systematic investment plans (SIPs) from mutual funds have become very popular these days. But there are certain things that investors should keep in mind when starting an SIP.
When looking at fund returns, avoid looking at just the past 12 months' performance, says Sanjay Kumar Singh
Neha Kapoor, 22, wants to buy a laptop and save for the future. Financial planning expert Gaurav Mashruwala tells her how she can achieve both goals.
A robo advisor may seem like the perfect solution for those with only a small investment capital who are just starting their investment journey, says Mrin Agarwal, founder, Finsafe India.
In a strong bull run, a VCA plan often produces mathematically infinite returns.
Tax planning should not be left for March. If you do so, you could face a severe cash crunch in that month, warns Sanjay Kumar Singh.
'For experienced and risk-taking investors, now may be the time to go all in.' 'By 'experienced and risk-taking', I refer to those who remained net buyers in equities during the early stages of the 2020 pandemic.' 'On the other hand, those who exited the markets during the pandemic may go the SIP way.'
'It will be best for investors to have a systematic investment plan in mid-cap and small-cap funds with a three-/five-year horizon.'
A point to remember is that the entry load is waived, only if I go through the fund's official website. Purchases through any other website will attract the entire entry load.
Only commitment and planning can help you reap the benefits of long-term investments, says Abhishek Agarwal
How much do you pay for your electricity bills? Let's assume an average of Rs 5,000 every month. What if you could cut it down by half? Over the life cycle of your building (50 years), the savings invested in a systematic investment plan at 12 per cent amounts to Rs 9.86 crore, if other factors remain constant. Not a bad investment.
Balanced advantage funds (BAFs) were popular in the later part of 2021 and continued to see good inflows until some months back as investors looked for safer options amid over-valuation concerns. As such concerns ease, investors are turning to riskier funds and shifting from BAFs. Redemptions from the hybrid fund category have exceeded in six of the last seven months, with investors pulling out a net of Rs 3,140 crore during the seven-month period.
'Starting an SIP now and continuing with it is likely to translate into high returns over the long term.'
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
Subramaniam feels it does make sense to have some overlay in lump sum if one has the cash to do so.
Even as the returns of mutual fund (MF) schemes have improved considerably in the past three months, addition of new investors has remained in the slow lane for the MF industry. According to industry data, during the first six months of CY 2023, MFs onboarded only 1.6 million new unique investors, in stark contrast to the 4.7 million investors added during the same period last CY and the 2.4 million in 2021. It is noteworthy, however, that the current additions for this year have doubled in comparison to the figure of 800,000 seen in 2020.
rediffGURU Ulhas Joshi answers your mutual fund queries.
Systematic investment plans (SIPs) of mutual funds (MFs) have seen a spike in demand with new registrations touching a five-year high already this year. Around 19.5 million new SIPs have been registered till December end, as against 14.1 million in the whole of financial year 2020-21 (FY21). Market participants say increasing investor awareness and positive experiences have spurred this increase.
Generally, getting into a mutual fund is associated with a long-term relationship whereby, there are good times as well as bad times. However, most investors are willing to enjoy the upside, but at the slightest hint of a downside, they start crying foul.
Experts say investors should stay patient and stay invested in mutual funds.
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