Now is the right time to start a Systematic Investment Plan (SIP) in Mutual Funds. If you are an old investor, you can increase the units after the recent correction.
Mutual Funds SIP: Financial Easer 2022 has been better for mutual funds. During this period, investors have got an average return of 20 to 48 percent in different segments of equity funds. At the same time, different schemes of these segments gave even more returns. Now that the new financials are about to arrive, it is time for investors to reassess their portfolio once again. On the other hand, if you have not invested yet, then new investors can take advantage of the recent correction and choose a better scheme. There is volatility in the capital market, due to which investors who do not want to invest money directly in equities, they can do financial planning through mutual funds.
Right time to start SIP
AK Nigam, Director, BPN Fincap says that it is the right time to start Systematic Investment Plan (SIP) in Mutual Funds. If there are old investors, then after the recent correction, the unit can be increased. He says that if you are a new investor and have the ability to take risk from the market and have a long-term target, then you can choose a better scheme from midcap, large and midcap and smallcap segments. While there are moderate investors, then focus on schemes with multi asset allocation theme. If you do not want to take any risk from the market, then equity savings and hybrid schemes are better options. Also invest some money in an asset allocation themed scheme. If you choose to invest in lumpsum for a long period, then you can also keep an eye on large cap funds.
Big benefits of doing SIP
The tendency to invest is encouraged by being disciplined.
You can take advantage of compounding by investing over a long period of time through SIP.
Get the benefit of cast averaging.
Flexible investment period and amount.
The option of investing every month instead of lump sum reduces the pressure on the pocket.
There is complete transparency in investing in mutual funds.
You can see the complete details of the fund manager investing your money in which stock, whenever you want online.
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