Articles
Getting the full benefits of SIP with the expertise of a financial advisor
by Finway FSC Empowering People FinanciallyHealthy
wealth benefits take time to multiply and those coming together in a short span
of time are just false attractions. This is when the idea of getting systematic
with the investments enters the scene and gives birth to Systematic Investment
Plan (SIP) that assists the people in step-by-step monthly or quarterly
investment for a period of time in any mutual fund scheme, thereby benefitting
one with the power of compounding. But, investment without taking the advice of
a financial advisor can be risky as well as unproductive. That’s why every investment
advisor in India asks to investors that what they know about SIP. Is it a
medium only to invest in mutual funds?
In fact, there’s nothing like good or
bad SIPs, but an investment advisor in India
guides his customers to select the best possible mutual fund schemes for
investment, where SIPs may adequately accumulate wealth for long-term financial
goals. So, deciding on the mutual fund schemes to invest in is a crucial step
to reap out the best benefits from SIPs and it should be taken after the
consultation with an expert financial/investment advisor.
Usually, people suggest thatshould investors
go to the mutual fund ratings to check credibility. But as per the opinion of
financial or investment advisor, the fact is, the ratings are covering only
half the part of the picture related to quantitative parameters such as returns,
risk average AUM, etc. The problem arises when the other half is not at all
taken into consideration, i.e., ignoring the qualitative parameters. Besides,
ratings work on a ‘one fits all’ approach that doesn’t apply to the real-life
scenarios as an investment and financial planning are personalized activities
and differ from person to person. Ratings can surely serve as starting points
for identifying the characteristic features of the investment-worthy funds, but
solely depending on them nothing beneficial can be guaranteed. So, if you are
living in a metropolitan city of India such as Delhi or Mumbai, then always
take the help from an expert investment advisor before making any
conclusion.
Hence, to reap great benefits from the
investments made in mutual funds it’s advised to go for the ‘Direct Plans’ over
the ‘Regular Plans’. These plans The
aforementioned points clearly indicate that while above when you invest in
mutual funds make it a point to opt for the ‘Direct Plans’ over ‘Regular Plan’.
Its due to their lower costs mainly the expense ratio, that Direct Plans are
able to generate around generate 0.5% to 1.0% additional returns every year.
With direct plans, the services of a mutual fund distributor/agent/relationship
manager get eliminated and the transactions get done either through online
modes or by visiting the registrar’s or the asset management company’s office
in person. This won’t sound big at first, but these small savings harvest rich
rewards in long-term.
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About Finway FSC 
Empowering People Financially
24 connections, 0 recommendations, 99 honor points.Joined APSense since, September 25th, 2018, From New Delhi, India.
Created on Oct 16th 2018 06:18. Viewed 263 times.
