Is it beneficial to invest in SIP?

What is the benefit of investing in SIP?

SIP or systematic investment plan offers you benefits like long-term gains, flexibility to withdraw or increase/decrease the investment amount, regular saving, and the facility to make minimum investments of Rs 500.

Is it a good time to invest in SIPs?

Mutual funds and risk go hand-in-hand, but SIPs spread out the risk over a period and reduces the risk. The longer your investment, the lesser is the risk. That is why the best time to start sip is when you are fine with the investment period.

Can I become rich by SIP?

If you invest just Rs 10,000 per month in an equity fund through SIP for 30 years, you can accumulate a corpus of Rs 3.53 crore. The power of compounding grows wealth and makes you rich. … Actual returns vary depending on the markets and the fund.

Can I lose money in SIP?

SIPs have losses

But as the market keeps falling and you continue to invest your average cost fall. … SIPs work well in a falling market condition or volatile markets. With lump-sum investments timing the market becomes important but with SIPs or lump sum with STPs one doesn’t have to worry about the market timing.

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Can I stop SIP after 1 year?

If you have activated ECS for SIP payments, then you must inform your bank through which SIP payments are made to deactivate the ECS and then notify the mutual fund house. A SIP would be automatically terminated when the ECS payments are not made for a period of three months.

Which SIP is best for 30 years?

Large-Cap Schemes

Scheme Name 5-Year Monthly SIP 10-Year Monthly SIP
ICICI Pru Top 100 Fund (G) Rs.9,41,591 Rs.27,57,958
Quantum LT Equity Fund (G) – Direct Plan Rs.9,15,695 Rs.28,82,955
Reliance Growth Fund (G) Rs.10,75,057 Rs.30,73,348
SBI BlueChip Fund – Reg (G) Rs.9,55,955 Rs.28,57,343

Which SIP is best in India?

The table below shows the best equity funds:

Mutual fund 5 Yr. Returns 3 Yr. Returns
ICICI Prudential Technology Fund – Direct Plan – Growth 33.95% 42.09%
TATA Digital India Fund DIRECT Plan Growth 34.48% 41.37%
ICICI Prudential Technology Fund 32.82% 40.9%
Aditya Birla Sun Life Digital India Fund – Growth-Direct Plan 32.7% 40.89%

Which is better SIP or PPF?

Tax benefits can be availed both in PPF as well as ELSS category of mutual funds under section 80C. … However, historical data suggests that a 15-year mutual fund SIP in an average fund can give you 1.5 times returns than PPF which makes it very attractive in terms of returns and liquidity.

Which is best SIP plan?

Top SIP Mutual Funds in India

SIP Plans Type 3 Year
HDFC Mid Cap Opportunities Fund Equity Fund 14.84%
HDFC Prudence Fund(G) Balanced Fund 9.02%
HDFC Small Cap Fund Equity Fund 21.52%
ICICI Prudential Balanced Advantage Fund Balanced Fund 9.16%
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What is the average return on SIP?

What is the average return on an SIP? The average return on an SIP depends on multiple factors such as type of mutual fund invested in, tenure of investment, amount of SIP and the prevailing rate of inflation. For example, if you invest in lar cap-equity mutual fund, the return is around 12-18%.