![]() Yes, you get sum assured in case of death In case of other mutual funds, there is no lock-in period 1.5 Lakh eligible for tax savingsįor ELSS 3 years. Learn More: ELSS Vs PPF 3. ULIP Vs Mutual Fund Basis Yes, a deduction up to Rs 1.5 Lakh under section 80Cġ5 years, can be extended by another 5 years Learn More: Mutual Fund Vs Stocks 2. ELSS Vs PPF Basisĭeclared by Govt. ![]() Yes, need to pay fees called expense ratio Need to buy several shares to create a diversified portfolio No, because the fund manager does everything on your behalf NIL, as the fund manager, exercises his expertise to find stocks. ![]() SIP also gives you the flexibility to invest on fortnightly, monthly and quarterly periods. In fact, you can start using SIP with as low as Rs. The method is especially suitable for salaried professionals.įor example, using SIP you can start purchasing 1000 units of the mutual fund every month. In a systematic investment plan ( SIP), you have the flexibility to split your purchase into smaller amounts, usually in the form of monthly investments. Recommended Read: Best Mutual Funds for Lumpsum Investment 2. SIP Investment in Mutual Funds The investment is best suited in case you already have surplus cash to invest. In lump sum investment, you make a single payment to purchase units of mutual funds. You can start investing in mutual funds in two ways, lump sum, and SIP. Mutual fund based on a specialty like sector funds, index funds, emerging market funds, fund of fund and theme-based mutual funds.Mutual funds based on investment objectives like growth fund, income fund, ELSS and liquid funds.Mutual fund based on asset class like equity mutual funds, debt mutual funds, money market funds and balance or hybrid funds.Mutual fund based on the structure like open-ended, closed-ended and interval mutual funds.Here are some of the types of mutual funds available in India. Mutual funds invest pooled money in all types of financial instruments and the types of mutual funds are known by the underlying class of instruments in which the major portion of the investment is made. In India, you have several types of mutual fund schemes suitable for all types of investment requirements be it for HNIs or retail investors, for long term or short term investment horizon.ĭue to time constraints and lack of expertise, you may find it very difficult to invest in financial instruments like T-Bills, G-Secs, NCDs, CP, CDs or Hybrid instruments. You can also read all the benefits and advantages of mutual funds in details. There are several benefits of investing money in mutual funds. To know more about the difference between SIP and Mutual Fund you can go through the article Difference between SIP and Mutual Fund. The mutual fund is the actual investment vehicle which pools the corpus of money from various investors and invests them in various asset classes. The systematic investment plan, popular as SIP, is one of the methods to invest in mutual funds.
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