Blog Details

What is a SIP??? SIP is systematic investment plan. What happens here is you have to decide a fix amount which will be auto debited from your bank account on a monthly basis. The question most people are getting confused is which SIP to invest in? Are SIPs and mutual funds same? Let me answer it, SIP is a mode of investment in mutual funds and mutual funds are the tool in which you invest in and get the returns. So SIP is not a tool in which you invest but through SIP you invest in a mutual fund. Which SIP to go for is a wrong question. Which mutual fund to go for SIP is the right question. As explained mutual funds are of many different types and it’s selected as per many personal factors of an individual. To read about Types of Mutual Funds, I have already written a blog on the same. Another benefit of doing a SIP in Mutual Funds is power of compounding. The returns which you get from mutual funds are on CAGR basis. Compounded annual growth rate. Let’s understand with an example:- If you have a SIP of 10000 on a monthly basis. Your yearly investment is 1.2Lakhs and assuming you get returns of 10% that year. First Year 1.2Lakhs *10% = 12000 1.2L +12000 = 132000 Second Year (1.32L  +1.2L ) * 10% = 25200 25200+252000 = 277200 Third Year (277200 + 120000) *10% = 39720 39720+397200 = 436920 . . . This is how it goes on and on and your money is compounded and it will grow over the years. Contact us for which fund to select and start off with your SIPs. [email protected] 6351564754