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SIP plans: Use your savings for you

Everyone wants to save some amount of his monthly income for the future, and hence he looks for a platform where he can have some profit from his savings and also his money is completely safe. The investor also wants such option where he can have his money back as soon as he wants. No one wants to take much risk from his money. After the observation of all the desire of investor, there is a number of options which can help the shareholder in completing his financial aim. But among all the options, a mutual fund is the right option for an investor.  

SIP plans

The mutual fund:

If one goes for investment in share market, he will find a number of investment companies. But there are several reasons why one go for mutual fund only. The mutual fund collected all the investor money, and all the deposited money is invested in the share market with the advice of a professional fund manager. It is not possible that in a mutual fund, companies invest all the money in the same investment company. Always the investments are invested in different investment companies.

Mutual fund always provides best returns to investors. One must check the best mutual funds for SIP (Systematic Investment Plan) plans for investment. Mutual fund offer investments in one go, which is called lump sum investments.

Also, the monthly payment offer is available in a mutual fund, which is called the monthly instalment scheme. To have the best mutual funds for SIP, one can ask from experts in stock markets and can also check on the internet.

Mutual fund schemes:

Different investment companies offer different investment schemes. Each company invest the amount only in the stock market. They all made different profit strategy. They all believe in different approaches. They invest in companies of different level. Some invest in blue-chip companies, whereas some go for emerging or midcap companies. They all receive some return for investing their investment, and the return is distributed to all the investor after the deduction of taxes and other expenses. The minimum amount to invest in SIP is of 500. In a lump sum option, one has to invest a minimum of 1000 for a one-time investment. Because of SIP, one can invest his amount on a monthly basis and reduce the amount of risk.       

Mutual fund options:

The mutual fund has two types of funds. One is open-ended fund and other is close-ended fund. They differ from each other on the basis of withdrawal of the fund. In an open-ended fund, one can get his investment back as he wants. But this type of offer is not present in the close-ended fund. After a certain time period, one can get his investment back in a close-ended fund. The company gives a profit of good amount in both the funds but still close-ended fund is more profitable if one has patience. Each shareholder can go for any of the midcap or large-cap companies for investment as per their choice. But large-cap companies are more profitable than mid-cap. The NAV is allotted to each investor, which keeps on changing on the basis of return. And the profit is distributed.

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