Save tax.... invest in SIP

[shweta123]

Systematic Investment Plan (SIP)

An SIP is a method of investing a fixed sum, on a regular basis, in a mutual fund scheme. It is similar to regular saving schemes like a recurring deposit. An SIP allows one to buy units on a given date each month, so that one can implement a saving plan for themselves. A SIP can be started with as small as Rs 500 per month in ELSS schemes to Rs 1,000 per month in diversified equity schemes.

Buy low sell high, just four words sum up a winning strategy for the stock markets. But timing the market is not easy for everyone. In timing the markets one can miss the larger rally and may stay out while the markets were doing well. Therefore, rather than timing the market, investing month after month will ensure that one is invested at the high and the low, and make the best out of an opportunity that could be tough to predict in advance

[shweta123]

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[shweta123]

:o
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Kuch prob hai yaha ! baad me bataati hu............

[vijay]

What is the basic difference between Mutual Funds and Equities ?

[shweta123]

What is the basic difference between Mutual Funds and Equities ?
A mutual fund is a company that brings together money from many people and invests it in stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund owns are known as its portfolio. Each investor in the fund owns shares, which represent a part of these holdings.

:)Bole to........... koi bi MF bahut se items me invest karta hai jaise equity shares, bonds, debentures etc. ............. so, equities are just an item in which any MF invests apart from the other mentioned items.......... So, in MF the retun we get is the some total of the return on these various types of investments. Equities r risky coz u never know how market turns, & equities can go any way! In case of MF some investment is also made on "Safe" securities (fixed incoming making that means!) so.......end result is safer comparatively to an extent :) i hope kuch clear hua!

[aabhisheksirohi]

Systematic Investment Plan (SIP)

An SIP is a method of investing a fixed sum, on a regular basis, in a mutual fund scheme. It is similar to regular saving schemes like a recurring deposit. An SIP allows one to buy units on a given date each month, so that one can implement a saving plan for themselves. A SIP can be started with as small as Rs 500 per month in ELSS schemes to Rs 1,000 per month in diversified equity schemes.



Good advice but I have few questions on SIP throw some light pls...

1) Is it true that SIP works in a well-diversified equity fund in the long run?

2) Can I invest a lump sum in the same account in which I'm doing an SIP?

3)What is the difference between lumpsum investment and a systematic investment plan (SIP)?

4) If I miss investing for a particular month, will there be any penalty involved?

5) What are the benefits of Systematic Withdrawal Plan? (SWP) is it something related to SIP?

6) Lastly It may be weird to ask but when is a good time to invest in SIP ?

Thank you !!

[shweta123]

Good advice but I have few questions on SIP throw some light pls...

1) Is it true that SIP works in a well-diversified equity fund in the long run?

2) Can I invest a lump sum in the same account in which I'm doing an SIP?

3)What is the difference between lumpsum investment and a systematic investment plan (SIP)?

4) If I miss investing for a particular month, will there be any penalty involved?

5) What are the benefits of Systematic Withdrawal Plan? (SWP) is it something related to SIP?

6) Lastly It may be weird to ask but when is a good time to invest in SIP ?

Thank you !!

Well .......... bina fees ke :rolleyes::) chalo........ lets try!!

1- Yes SIP works well there, coz the underlying funda is that whatever u invest in SIP is invested in mutual funds and mutual funds are fairly hedged!i.e. have less risk & a fairly assured return!

2- if u have an a/c and r investing in sip then u can invest in lumpsum too, but only to an extent as it depends on sacheme to scheme. SIP is a monthly investment actually and not lumpsum.

3-SIP is monthly fixed sum investment!

4-Penalty depends on scheme to scheme. Generally no penalty if delay is just for a month!

5- SWP is invest in lumpsum and withdraw a fixed sum in systematic way.

6- See, thumb rule for investing in market........ when the market after a down is coming up...... but in this case nothing is much relevant as the investment is being made ultimately in MF & these carry minimal risk.Moreover the investment is for many a months as it is monthly invetment, so the market shows many a turns during such period & thus any proper time cant be anticipated.

[nmalik121]

Hi Shweta...i am investing through SIp in SBI mutual funds. A financial company handles my SIP investments. The amount is 2000 rs pm. Though last month the guy from company told me that my investment is doing greta, earning profits...i wanna know can i withdraw the amount whenever i wish or i had to stay bounded for certain period. And if i withdrew rite now...is it a gud decision or bad one? Pls tell...im very confused about it.

[shweta123]

Hi Shweta...i am investing through SIp in SBI mutual funds. A financial company handles my SIP investments. The amount is 2000 rs pm. Though last month the guy from company told me that my investment is doing greta, earning profits...i wanna know can i withdraw the amount whenever i wish or i had to stay bounded for certain period. And if i withdrew rite now...is it a gud decision or bad one? Pls tell...im very confused about it.


Nitin ji.......... the terms of SIP offered are different for different schemes..... & these terms specify the tenure after which u can withdraw, its different for different schemes........so, better refer to the terms or ask the concerned person. Further, u may ask that fuy about the Statement of Account till date specifying the position of earnings as on date.

[nmalik121]

Thanks Shweta!

[sudhakarsingh]

Systematic Investment Plan (SIP)

An SIP is a method of investing a fixed sum, on a regular basis, in a mutual fund scheme. It is similar to regular saving schemes like a recurring deposit. An SIP allows one to buy units on a given date each month, so that one can implement a saving plan for themselves. A SIP can be started with as small as Rs 500 per month in ELSS schemes to Rs 1,000 per month in diversified equity schemes.

Buy low sell high, just four words sum up a winning strategy for the stock markets. But timing the market is not easy for everyone. In timing the markets one can miss the larger rally and may stay out while the markets were doing well. Therefore, rather than timing the market, investing month after month will ensure that one is invested at the high and the low, and make the best out of an opportunity that could be tough to predict in advance



:) hi ma'am

hw n where i cn do investment ???????
plz mke it clear............

[shweta123]

:) hi ma'am

hw n where i cn do investment ???????
plz mke it clear............

Hi Sir ! u can invest anytime........actually its a monthly investment & can be started anytime..... it starts frm Rs. 500 per month. Same amount is to be invested each month fora couple of months. Investment details can be had frm the instututions offering this scheme.....like tata mutual fund..... ICICI.... etc. U can ask the complete details abt the returns u get etc frm the person concerned of these institutions.

[shweta123]

Systematic Withdrawal Plan (SWP)
SWP is a Tax efficient way of obtaining regular income. Investor can opt for SWP for periodic withdrawal of sums from their accounts. Investor can opt for any one of the following two options offered by the Schemes

Fixed Amount Encashment
Under this facility, the Unitholders can opt to redeem/ switch (transfer) fixed amount of money from their accounts at periodic intervals.
http://www.utimf.com/images/separador.gifCapital Appreciation Encashment
Under this facility, the Unitholders can opt to redeem amounts equivalent to the appreciation in their investment value at periodic intervals. Thus the appreciation, if any, earned by the Scheme during the specified period shall be automatically redeemed and paid to the investors at the Applicable NAV. Presently this option is available only for investors in Growth Plan/Option
The amount thus withdrawn / switched shall be converted into units at the Applicable NAV, subject to load, if any, and such units shall be subtracted from the Unit balance of that unitholder. This facility shall be subject to the terms and conditions contained in the SWP / STP enrollment form. The Registrar may terminate SWP/ STP on receipt of appropriate notice from the Unitholder. It will terminate automatically if all Units are liquidated or withdrawn from the account or upon the receipt of notification of death or incapability of the Unit holder

SWP / STP shall not be available for investments under 54 EA / 54 EB of the Income Tax Act, 1961, during the stipulated lock-in-period of 3 years / 7 years respectively

The withdrawal / Transfer would happen on the date prescribed by the Investment Manager and would be subject to applicable load structures for respective schemes. Investors desiring to opt for these benefits are requested to read the instructions contained in the enrollment form carefully

SWP can be modified/terminated by the unitholder by submitting a written request 5 days in advance

[shweta123]

Systematic Transfer Plan (STP)
The Systematic Transfer Plan gives investors the option of systematic transfer of fixed amounts/ capital appreciation on a periodic basis to another Plan/ Scheme of the Mutual Fund. STP can availed of as a monthly or quarterly basis from one plan to another plan in the same scheme or to another scheme within the fund All transfers will take place on the 30th/ 31st of every Month/ Quarter based on the NAV of that day.

An investor can opt for systematic transfer of fixed amount or of the Capital Appreciation on investment in the scheme to any desired scheme on a monthly or quarterly basis. STP of Capital Appreciation is available only under the Growth plan and not under Dividend Plan. The amount of transfer under STP will be considered as redemption and will be made at the applicable redemption price on the day of transfer and at the applicable load, if any.

STP can be modified/terminated by the unitholder by submitting a written request 5 days in advance

[aabhisheksirohi]

Well .......... bina fees ke :rolleyes::) chalo........ lets try!!

It is a social networking forum rather than a profit making business:):)
Although there are lot of advertisements floating on the forum previously to my surprise it was stop now!!

Neway thank you for all your efforts gr8 knowledge sharing thread for those who need such schemes to save tax.

Thank You !!

[shweta123]

:)
It is a social networking forum rather than a profit making business:):)
Although there are lot of advertisements floating on the forum previously to my surprise it was stop now!!

Neway thank you for all your efforts gr8 knowledge sharing thread for those who need such schemes to save tax.

Thank You !!

hmmmmmm.. ........ gai fees :rolleyes: anyways......... chalo bhool jaate hai profit ko!!

[RaviDhaka]

Shweta,
Oh waooo you remember me...ya you are right your bro here. Shweta, i invested last year in MF's and i have earned 50% margin till today.
What you advise should i keep these MF's or not.

Give me right direction for investment in equity's, MF's, IPO's, FD's, etc. Don't worry i will pay your fee.

Thanks,
Ravinder Singh

Work Work Work....

[shweta123]

Shweta,
Oh waooo you remember me...ya you are right your bro here. Shweta, i invested last year in MF's and i have earned 50% margin till today.
What you advise should i keep these MF's or not.

Give me right direction for investment in equity's, MF's, IPO's, FD's, etc. Don't worry i will pay your fee.

Thanks,
Ravinder Singh

Work Work Work....

Ravi ji.......... keeping MF depends on just whether u want them encashed or not !! coz MF r fairly safe........ they carry a fair return....... so not much risk...... u can keep them going if u dont need them encashed for any purpose.

Well, the questions u have asked cant be answered so easily......... they require discussions & r case subjective, however, i will ans in short. Investment in Equity is a bit risky.....depends on how market moves & the kind of Company whose shares u being purchased.......next IPO is Initial Public Offering i.e. when shares of any Co. r coming to market for first time...... many a tomes in this profit is made on the very first day coz no caps r their on 1st day rest after that depends on how share is moving!..... next........ FD is safe & u know in advance how much u will get & in wat time....... & MF is safer than equity but u dont know wat exactly u will earn......