Powered by Blogger.

Earn Money From Mutual Fund SIP Options – Tips

Earn money from mutual fund SIP option is not only slogan, it is truth as I assure you. I have written this article to change the negative thoughts of investor. So many people are feared to invest in mutual fund because they think that money will invest in share market and they will lose definitely.
They do not know about the power of mutual funds and how it works day by day closing of market. I earned money with handsome rate of interest on my invested amount. I got the higher return from funds and save my tax also.

You want to know about the SIP. This is just like working as bank recurring deposit scheme. In bank Recurring deposit scheme, investor only get a certain rate of interest and pay the tax to government on maturity (if applicable). The minimum tenure may be 5 year or more. But in mutual fund, investor will not get any assurance of certain rate of interest and will pay tax also, if withdrawn the amount before completion of certain locking period. These are the facts as I shared with you.

Now, the question is – why people will invest in mutual fund if assurance of certain return gets in bank recurring deposit scheme. First, SIP is definitely working as recurring deposit scheme, but investor can get the returns beyond expectation. The return can be 20% to 40% compounded annually. It is not only the thoughts of my mind, it is truth. Of course invested amount will go in share market but investor should be faith on the economical growth of country. They should be aware about the ups and down of share market and trends of market. I would like to say that every country wants to take the decision to improve the economical scenario to bust up the share market and attract the investors of other countries. Government takes the decision on behalf of people to choose the fastest track for economical growth of country, so investor should not be fear that what will happen with money, which he invested in capital market or share market through Mutual Fund products. If we look back of the share market history, we can get the assurance that market has taken time to give the better results to investor in long term investment. Mutual fund is not risky investment tools for long term investor. Definitely invest in Mutual Fund online, if investor wants to compete with country inflation ratio.

The second and most important part is tax deduction part. If mutual fund investment locking period is three years then you have not be paid any tax amount after getting the maturity.

There are so many schemes are available in Mutual fund market like – SIP (Systematic Investment Plan), MIP (Monthly Income Plan), one time deposit plan. SIP is best in all of them. SIP will work in both the condition of share market. If share market is in downward position in intraday trading and investor invested his amount same day, then they will get the more units and get the more value of his Purchase units on the growth of share market.

Mutual funds product are based on three type –

1. Debt funds
2. Liquid funds
3. Equity funds.
-
-
Investor can choose any of these funds according to availability of Mutual Funds product. The basic concept of first funds dept fund - Debt fund is secured fund. Very small percentage of amount (Equity – 10% approx) of money will invest in share market and do not produce very high ups and downs in investment amount. Second is liquid fund, the percentage of investment in equity will be high from dept fund – ratio will be 40% approx. Third is Equity Funds, equity fund percentage will be 80% approx. in share market and fluctuation of growth will be reflected as per market ups and downs. According to my opinion, to achieve the goal third option is right for long term investor.

I would like to share my experience that how much I have gained after choosing Equity based plan. I took a plan and run it 2 years completely with Rs. 1000/- (monthly investment) (approximately $17 per month). My total investment was Rs. 24000/-. When I checked the value after 2 years the amount cross the value of Rs. 36000/-. The annual return was 25% approx.



Start the investment in early age with equity based mutual fund product and invest 10 to 15 years continuously. Definitely compound return will be added with principal amount. If wants to go with dept or liquid fund, you are most welcome, these are also capable to give the more returns from bank fix and recurring deposit schemes.

-------------------------------------------------------------------------------------------------- -
Categories:
Pin It
-
-

0 comments:

Post a Comment